‘No time to plan’ for fallout of potential Medicaid cuts in Oklahoma, hospital officials say

OKLAHOMA CITY — Cuts to Medicaid being considered by Congress will affect access to health care for “all Oklahomans” and harm the state economy, state hospital leaders warned Friday.

Members of the Oklahoma Hospital Association said the proposed federal cuts to Medicaid could eliminate nearly 15,000 jobs and over the next decade reduce federal reimbursements to Oklahoma hospitals by $8.7 billion.

“This is happening at such a breakneck speed,” said Denise Webber, president and CEO of Stillwater Medical. “There’s not ample time to plan and create a strategy that can serve Oklahomans and U.S. citizens in a manner that we can plan for.”

Cuts to Medicaid as part of President Donald Trump’s “big, beautiful bill” are being considered in the U.S. Senate as part of Congress’ budget reconciliation process. The bill passed through the House, but has faced resistance in the Senate due in part to concerns about its expected negative impact on rural hospitals. Also the chamber’s parliamentarian ruled several proposed Medicaid changes can’t proceed. Senate leaders hope to vote on the bill before July 4.

Webber said the proposed Medicaid cuts are unlike anything she’s seen in modern history. She chairs the Oklahoma Hospital Association board. “Big cuts” will have to be made for hospitals to be able to provide some services, she said. The Oklahoma Hospital Association advocates at state and federal levels on behalf of hospitals and works to promote health policy issues.

If cuts are made because hospitals can no longer afford staff, it doesn’t only affect Medicaid patients but all Oklahomans seeking care, Webber said.

“If we don’t have enough nurses and hospital beds and we have to put in (patient) caps, that can mean that you’ll be held kind of in a limbo land, waiting for a hospital bed,” Webber said. “And then what potentially happens, because this is happening statewide and nationwide, is we may not even understand, because I don’t believe we do, how bad that could get.”

The most expensive services, like oncology and neonatal, are likely to be cut first, she said.

Rich Rasmussen, president and CEO of the Oklahoma Hospital Association, said the hospital group has spent time in D.C. advocating directly to Oklahoma’s congressional delegation and their staff, warning them of the potential effects of these cuts.

If the bill were to pass and immediately affect the existing reimbursement models beginning this summer and fall, hospital boards will need to “wrestle” with the reductions, he said.

“I think it’s something that nobody looks forward to,” Rasmussen said. “So hopefully our senators will stand in the gap for us and ensure that we aren’t hit with these types of cuts.”

Ten hospitals in Oklahoma have closed since 2005, he said. But more hospital closures, especially in rural Oklahoma, could be looming if the Senate approves the Medicaid cuts.

Stilwell Hospital announced its closure this month, raising concerns about rural health care access.

Rural Oklahomans are already faced with worse health care outcomes and provider deserts, but these will be exacerbated by Medicaid cuts, said Trent Bourland, vice president of rural development for SSM Health Oklahoma.

“The lack of analytical depth in evaluating the full effect on the rural providers represents a serious oversight in responsible governments,” he said. “Our rural communities are the backbone of our nation. They deserve policy decisions guided by solid data, practical foresight and respect for the role in what rural America does for sustaining America’s strength and stability.”

People in rural areas will have to travel further for care, especially OB-GYN care, Bourland said.

In the 15 most Northwest Oklahoma counties, obstetrics care would most likely be eliminated, he said. This would force people to drive over 40 miles for routine care and up to 80 miles for specialty care, Bourland said, but only if other regional hospitals are still able to provide those services.

Jay Johnson, president and CEO of DRH Health in Duncan, said the hospital will have to put a hold on its efforts to expand OB-GYN and mental health care and potentially eliminate travel nurse contracts.

“We’ll often get into these conversations of rural and urban, but there’s not much of a rural and urban in health care anymore because we’re all in this together,” Johnson said. “And that’s what it takes to provide care for our patients throughout our state.”