How Pennsylvania Hospitals are Preparing for the Challenges of H.R. 1

June 09, 2026

Hospital leaders are preparing for significant disruption as payment cuts and coverage losses stemming from last year’s federal budget reconciliation bill, H.R. 1, begin to phase in.  

HAP’s annual Leadership Summit last week brought together a panel of hospital leaders to discuss H.R. 1 and its implications for hospitals. Moderated by Sheilah Borne, vice president of government health relations at Penn State Health, the panel discussion focused on “implementation, impact, and action.”

Here are some key insights from Pennsylvania hospital leaders:

‘The way we’ve always done it won’t work’

Patti Jackson-Gehris, president of UPMC North Central PA and UPMC Williamsport, said UPMC is focusing on leveraging technology in new and innovative ways to adapt to evolving challenges.

“We are spending a lot of time reimagining and reenvisioning models we’ve known. We know the way we’ve always done it won’t work,” she said.

She emphasized the importance of ongoing communication with staff during periods of change. “We are having regular conversations with them so they understand the challenges, so when we have to make hard decisions, they have a greater understanding of the ‘why,’” she said.

Jackson-Gehris also noted that legislative outreach remains a priority, stressing the importance of “personalizing how it will impact constituents.”

In addition, UPMC is expanding the use of telemedicine to improve access to care, reduce costs, and enable earlier intervention for patients—potentially preventing hospitalizations and improving outcomes.

‘Focused on maintaining coverage’

Anita Colon, MHS, vice president of revenue cycle operations at Temple Health, said much of Temple’s focus is on financial counseling, communication, and strengthening health record systems, particularly given the large population of uninsured and underinsured patients they serve.

“Historically, we’ve been focused on obtaining coverage; now we’re focused on maintaining coverage,” she said.

Colon added that hospital teams are increasing patient outreach to help individuals understand Medicaid coverage and related changes. Updates to health record systems will also help track eligibility deadlines and improve communication with patients during redetermination periods.

Telling the story

T. Clark Simpson, MD, president and chief medical officer of Punxsutawney Area Hospital, said his hospital serves a high Medicaid population that “will be hard hit by the changes.”

He said adaptability will be key to navigating those impacts.

Simpson noted the hospital has been holding “town halls” to explain the changes and outline anticipated challenges. He encouraged health care leaders to take every opportunity to tell their story, engage the community, and build public understanding and support.

Innovating through a ‘fail fast’ mindset

Elizabeth Jaekle, executive vice president and chief strategy officer at Guthrie, said leaders at Guthrie are focused on innovation and on anticipating the impact of policy changes on rural communities.

She noted that in 2022, Guthrie launched a five-year strategic plan that prioritizes patient quality and safety, with innovation embedded as a core cultural focus.

To support that approach, the organization has embraced a “fail fast” mindset to encourage rapid learning and adaptation.

In addition, Guthrie is expanding the use of augmented care technologies to support both clinical staff and administrative functions.

See more key takeaways from Day 1 and Day 2 of HAP’s Leadership Summit.