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Medicaid cuts pose a financial threat to safety-net hospitals like University Health

A building with a large sign that reads "University Health, Truman Medical Center" sits behind four flag poles with the American, Missouri and Kansas City flag on them.
Zach Perez
/
KCUR
Dr. Michael Moncure, a trauma surgeon with University Health, estimates that 25% of all patients who come to Truman Medical Center are treated for firearm related injuries.

Charlie Shields, the CEO of University Health in Kansas City, says federal Medicaid cuts passed in President Trump's recent budget bill are likely to pose challenges for the hospital system. University Health relies on Medicaid reimbursements more than other providers in the metro.

Rural hospitals are expected to be disproportionately impacted by the Medicaid cuts in President Donald Trump's new tax and spending law. But hospitals in urban areas, such as University Health in Kansas City, are bracing for impact, too.

University Health is Kansas City's largest safety net hospital, which takes in patients regardless of their ability to pay. As many as 189,000 people could lose Medicaid coverage as a result of the new law by one estimate, which raises eligibility requirements and requires twice yearly eligibility renewal.

That means University Health could face shortfalls as a result of providing more uncompensated care. Right now, more than half of its patient revenue at University Health comes from the government low-income health care program.

"For safety net hospitals like University Health and academic medical centers like University Health, there was nothing particularly positive in the bill," said president and CEO Charlie Shields. "There were only things that would be challenging for us."

It will take time to see the full impact. Much of the law isn't set to take effect until the end of 2026, and Shields says delays in implementation are also possible.

Shields says University Health is committed to helping patients navigate changes in coverage.

  • Charlie Shields, CEO, University Health
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