HEALTHY, VIBRANT COMMUNITIES RELY ON
STRONG, STABLE HOSPITALS
Pennsylvania’s Health Care and Economy are at risk.
Pennsylvania’s ability to strengthen its economy, and be the best place to live, work, and grow depends on strong hospitals. They are the backbone of our communities, but they are under growing financial strain.
Chronic state underfunding combined with looming federal cuts puts access to care, jobs, and public safety at risk across the commonwealth.
Without changes, more hospitals will be forced to reduce services or close altogether — and our communities will pay the price.
Why It Matters
Even before the new federal cuts take effect, Pennsylvania lags behind other states in supporting hospital stability.
Less than half of Pennsylvania’s hospitals are operating with sustainable financial margins
37% are currently operating at a loss, and 39% face multi-year losses
25 hospital closures in past decade
Without action, these pressures will only intensify, putting patients and communities in jeopardy.
The Core Problem
Medicaid covers nearly 1 in 4 Pennsylvanians, but the program reimburses hospitals just 71 cents for every dollar it costs to deliver care.
Upcoming federal changes will push that number down to about 64 cents on the dollar.
Hospitals can’t make up the difference. And they can’t keep absorbing losses forever.
Medicaid underpayment is a structural driver of hospital closures, especially in rural and working-class communities
When hospitals close, communities lose care, jobs, and economic stability
Emergency response times increase, putting public safety at risk
what happens if we do nothing
Inaction has real consequences.
Without timely, targeted state support, Pennsylvania could see the following by 2030:
12–14 hospital closures
An average 22-minute longer drive to reach the nearest hospital
$900 million in lost wages due to hospital-related job losses
These outcomes would weaken our health system, our workforce, and our economy.
The solution
Sustainable hospital funding protects everyone.
When hospitals disappear, everyone feels it. Together, we can make sure Pennsylvania remains a place where families can live, work, and grow with access to high-quality, local care.
We must prioritize policies that ensure hospitals are paid fairly for the care they provide. Sustainable payments allow hospitals to:
Keep essential services open
Invest in staff, technology, and infrastructure
Support local jobs and economic growth
Ensure timely access to care in emergencies
Enable vibrant, livable communities
Protecting hospitals isn’t just a health care issue—it’s an economic and public safety imperative.
