Advocacy Week Makes Hospitals’ Stability a Top Priority

3 takeaways from HAP’s advocacy on Medicaid, medical liability, and hospitals’ financial strain

October 28, 2025

During Advocacy Week, Pennsylvania’s hospitals are putting the spotlight on the ways they support their communities.

And this Advocacy Week could not come at a more urgent time—during a busy committee schedule with several critical hospital bills and amid a state budget stalemate, a federal shutdown, and the cascading fallout from H.R.1. that is still to be seen.

Today, Pennsylvania hospital leaders met with lawmakers in the Capitol, and they emphasized what’s at stake. Their advocacy highlighted several key themes, including underfunding Medicaid, hospital sustainability, medical liability, and protecting access to care. They also discussed hospitals’ efforts to address workplace violence and grow the workforce.

Here are three points of emphasis for our advocacy:

1. Chronic underfunding of Pennsylvanians’ health care and looming federal cuts put care at risk

Healthy, vibrant communities start with strong hospitals, but Pennsylvania hospitals’ financial stability is at risk.

Less than half of hospitals are on track for long-term stability, 37 percent are operating at a loss, and 39 percent have multi-year losses.

We need policies that keep hospitals and services open so that Pennsylvania can have healthy, economically competitive communities.

See HAP’s fact sheet on supporting hospitals’ financial stability.

2. Federal Cuts will worsen these challenges

The fallout from H.R. 1 will be significant, resulting in a $4.5 billion direct cut to hospital Medicaid payments over the next decade, 310,000 Pennsylvanians losing Medicaid, and between a 39–66 percent increase in uncompensated care.

Chronic underpayment also will get worse. Once the changes from the reconciliation bill go into effect, Medicaid reimbursement for the care hospitals provide patients will be 64 cents on the dollar, compared to an already unsustainable 71 cents now.

Medicaid is the health insurance program for close to 1 in 4 Pennsylvanians and pays hospitals for the care they provide enrollees. Underfunding Medicaid forces hospitals to absorb the difference and puts services that entire communities depend on at risk.

HAP continues to emphasize that lawmakers at every level of government must act to protect access to care. See HAP’s fact sheet on state budget investments that support vital and lifesaving care.

3. Pennsylvania’s medical liability climate puts access to care at risk

High premiums and the threat of excessive verdicts make it challenging for Pennsylvania to attract and keep physicians and other providers.

And the challenge is increasing. Pennsylvania has the highest medical liability payouts per capita among all states, and providers are facing a 21 percent year-over-year increase in medical liability premiums for OBGYNs and surgeons.

See HAP’s fact sheet on our medical liability crisis.

Be on the lookout for additional coverage tomorrow as we conclude a week of advocacy!