5 Wisconsin Hospitals Face Closure Risk After Sweeping Federal Medicaid Cuts

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

The analysis, from Public Citizen, identified hospitals as financially vulnerable due to their reliance on Medicaid and ongoing operating losses.

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The cuts were included in a federal budget package signed by Donald Trump on July 4, 2025.

Researchers identified hospitals as at risk if they had a Medicaid and low-income payer mix of at least 20 percent on average from 2022 through 2024 and negative profit margins over that same period.

Hospitals At Risk

In Wisconsin, the report identified these hospitals as facing a higher risk of closing, cutting services or laying off workers:

• St. Joseph’s Hospital, Chippewa Falls
• Wheaton Franciscan Healthcare – All Saints, Racine
• Ascension Wisconsin Emerus, Menomonee Falls
• Ascension Columbia St. Mary’s Hospital, Milwaukee
• Ascension St. Francis Hospital, Milwaukee

The facilities include major hospitals in the Milwaukee area as well as regional providers serving other parts of the state.

Across the country, the report found that hospitals at risk tend to serve communities with higher shares of low-income residents, as well as larger Black and Hispanic populations.

Wisconsin Impact

Several of the hospitals identified are part of larger health systems, including Ascension Health, but still face financial pressure tied to reimbursement rates and patient mix.

The report notes that many hospitals in this category are critical access or otherwise financially vulnerable providers that play an outsized role in their communities.

Financial strain tied to Medicaid cuts could lead to reduced services, particularly in areas like maternity care, as well as layoffs or potential closures, according to the report.

Congress included a $50 billion rural health fund in the legislation aimed at stabilizing providers, but researchers say it remains unclear whether that funding will be enough to prevent closures or service reductions.