HAP Statement on the Passage of the 2025–2026 State Budget

Harrisburg, PA (November 12, 2025) – The Hospital and Healthsystem Association of Pennsylvania (HAP) today reacted to the passage of the 2025–2026 state budget. HAP President and CEO Nicole Stallings released the following statement:

“The commonwealth’s 2025–2026 budget maintains important hospital funding that supports access to high-quality health care in Pennsylvania communities. HAP and Pennsylvania’s hospital community appreciate the recognition by the General Assembly and administration of the vital need to invest in our communities’ health care and prioritization within the budget. In particular, the budget continues funding to rural hospitals, health care workforce development, and other critical services communities depend on like trauma centers, burn units, and obstetric and NICU care.

“Fewer than half of the commonwealth’s acute care hospitals are operating with margins necessary for long-term stability because they have been chronically underfunded for the care they provide—and these challenges are mounting. Medicaid is one of hospitals’ largest payors yet, in Pennsylvania, reimburses only 71 cents per dollar they spend providing care. This is already unsustainable and upcoming federal cuts increase the urgency for the commonwealth to address this chronic underinvestment.

“We can’t have healthy, vibrant, and economically competitive communities in Pennsylvania without strong, financially stable hospitals. As focus will soon shift to the 2026–2027 budget, HAP looks forward to continued conversation with policymakers about ensuring our hospitals and communities can thrive.”