5 MD Hospitals Could Face Closure After Federal Medicaid Cuts: Report

Five hospitals in Maryland are among 446 across 44 states and Washington, D.C., facing a heightened risk of closing, cutting services or laying off workers due to federal Medicaid funding cuts, according to a new report.

The cuts to Medicaid were included in the "One Big Beautiful Bill Act" signed by President Donald Trump on July 4, 2025.

The report by Public Citizen, a nonprofit consumer advocacy organization, says the law will cut $911 billion in federal spending on Medicaid and CHIP over 10 years, according to estimates from the Congressional Budget Office.

"The cuts will be devastating to many low-income and disabled individuals who rely on Medicaid," researchers with Public Citizen wrote. Moreover, they will have knock-on effects on hospitals that disproportionately serve these communities, deepening the financial strain already plaguing rural and safety-net hospitals and compromising their ability to deliver care, potentially leading many to close."

In Maryland, Medicaid covers about 1.5 ​million people, according to the state Department of Health. Nearly one in four Marylanders gets their health insurance through Medicaid. Half of those covered are children.

The Maryland Department of Health estimates that about 15,000 noncitizens could lose coverage when restrictions on which undocumented immigrants can qualify for Medicaid take effect this October, according to a report by Maryland Matters. That figure is lower than previous estimates of 60,000 undocumented immigrants who could lose coverage.

Another provision of the federal bill adds work requirements for 360,000 Medicaid recipients, which could result in more disenrollments. The Department of Health estimates that 115,000 Marylanders could fall off Medicaid enrollment due to this requirement.

Hospitals At Risk

Public Citizen identified these five Maryland hospitals that are at a higher risk of closing, cutting services or laying off workers:

• MedStar Southern Maryland Hospital Center, Clinton
• MedStar Franklin Square Medical Center, Baltimore
• Ascension Saint Agnes Hospital, Baltimore
• MedStar Harbor Hospital, Baltimore
• MedStar Good Samaritan Hospital, Baltimore

Communities served by the at-risk hospitals have larger shares of Black and Hispanic residents and people living below the poverty line than communities served by other hospitals, according to the report.

The report found that the average hospital service populations were 20.2% Hispanic and 13.3% Black, compared with 13.0% Hispanic and 8.9% Black for other hospitals. Nearly 20% of the at-risk hospitals, or 85 facilities, serve high-poverty areas, according to the report.

The states with the highest number of at-risk hospitals were California (83), New York (45), Illinois (28) and Washington (22).

Addressing Medicaid Cuts

Maryland officials anticipate the state will lose up to $2.7 billion in annual federal funding when all provisions of the "One Big Beautiful Bill Act" are implemented. The cut represents almost 20% of Maryland’s current Medicaid budget of $14.6 billion, leaving Maryland with $11.9 billion in federal and state dollars to cover Medicaid.

Deputy Health Secretary Perrie Briskin told state lawmakers at a hearing in January that Gov. Wes Moore's administration plans to add additional staffing and information technology to keep as many people enrolled in Medicaid as possible in the upcoming fiscal year.

Moore's proposed budget for fiscal 2027 would also fund Medicaid services at $16.9 billion, up from $14.6 billion in the current fiscal year.

The budget also earmarks $13 million from the state's general fund to implement changes under the federal bill and to improve administrative operations in hopes of reducing the number of Medicaid recipients who may lose coverage while still qualifying.

Patch news partner Maryland Matters contributed reporting.

— With reporting by Caren Lissner and Kristina Houck