State officials warn H.R. 1 could strain rural hospitals
California Treasurer Fiona Ma and Controller Malia Cohen said federal health care cuts in H.R. 1 could force rural hospitals to close services. They warned that Medi-Cal losses would hit facilities that already rely heavily on those patients.
Ma said the bill is expected to take full effect around October and could leave millions of Californians without Medi-Cal coverage. Rural hospitals already receive less funding than urban systems, so a drop in insured patients would cut revenue at facilities with narrow margins.
Cohen said hospital closures would affect both access to care and local jobs because many rural towns count the hospital among their biggest employers. In high cost regions such as the Bay Area, job losses and unpaid bills could add pressure to housing and local economies.