HAP Statement on Governor’s 2026–2027 Budget Proposal

February 03, 2026

Harrisburg, PA (February 3, 2026)—The Hospital and Healthsystem Association of Pennsylvania (HAP) released the following statement from President and CEO Nicole Stallings in response to Governor Josh Shapiro’s proposal for the commonwealth’s 2026–2027 budget:

“Pennsylvania cannot be a leader in growing its economy, attracting investment in our communities, and bolstering public safety if it doesn’t protect access to hospital care. HAP stands ready to work with Governor Shapiro and the General Assembly to make the investments necessary to preserve the care our communities depend on.

“A recent expert analysis finds Pennsylvania hospitals are at risk because the commonwealth falls behind other states in adequately funding hospital care and—without intervention—as many as 12–14 more hospitals could close over the next five years. Fewer than half of the commonwealth’s acute care hospitals are operating with margins necessary for long-term stability because, for too long, their payments for patient care have fallen well below their cost to provide it. Pennsylvania’s Medicaid program reimburses hospitals less than their peers in most other states—only 71 cents per dollar in cost, on average. Upcoming federal cuts will worsen this already unsustainable trajectory.

“We cannot have healthy, vibrant, and economically competitive communities in Pennsylvania without strong, financially stable hospitals. We look forward to working with state policymakers to ensure sustainable payments that our hospitals and communities need to thrive.”