Fact Sheet: Pennsylvania's Health Care and Economy are at Risk
We can’t have healthy, vibrant communities without strong, stable hospitals. But chronic underfunding of Pennsylvanians’ health care and looming federal cuts put care at risk.
Pennsylvania Hospitals are Strained
The status quo is not sustainable and will force some hospitals to reduce services or close.
- Less than half on track for long-term stability (FY 2024 data)
- 37 percent operating at a loss
- 39 percent with multi-year losses
Payments Already Don’t Cover Costs
Medicaid provides health insurance for nearly 1 in 4 Pennsylvanians, paying hospitals and providers for the care they provide enrollees. For years, Pennsylvania’s Medicaid program has reimbursed well below what it costs to provide care, leaving hospitals to absorb the difference and putting services at risk. Upcoming federal cuts will widen this gap even more.
For each dollar Pa. hospitals spend providing care to Medicaid and uninsured patients:
Hospital Expenses Rising
6.8 percent year-over-year increase in hospital expenses; 2.5x the rate of inflation.
Federal Cuts Will Worsen These Challenges
As a result of upcoming federal cuts, in Pennsylvania:
- $4.5 billion direct cut to hospital payments over next decade
- 310K+ people losing Medicaid coverage
- 39–66 percent increase in uncompensated care (as percent of net patient revenue)
We need policies that keep hospitals and services open so that Pennsylvania can have healthy, economically competitive communities.
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Topics: Access to Care, Federal Advocacy, Medicaid, State Advocacy
Revision Date: 10/16/2025
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