McLaren Central Michigan in Mount Pleasant is named one of three rural hospitals in the state and 300 nationwide that are more vulnerable to the effects of the recently signed “Big Beautiful Bill,” according to new research from the University of Northern Carolina.
"Substantial cuts to Medicaid or Medicare payments could increase the number of unprofitable rural hospitals and elevate their risk of financial distress,” the study explains. “In response, hospitals may be forced to reduce service lines, convert to a different type of health care facility, or close altogether.”
In an emailed statement, McLaren said they have no plans of closing their hospital in Mount Pleasant, but they are worried about the cuts.
“McLaren Health Care shares the concerns expressed by the broader provider community in that significant cuts to federal health care spending could have a devastating and disproportionate impact on people’s ability to efficiently access the necessary care they require,” McLaren wrote in an email.
Currently, there are over 2.6 million Michiganders who have Medicaid, and they make up over 20 percent of hospital patients on average across the state, according to a Michigan Department of Health and Human Services Medicaid report.
The same report estimates over 700,000 people in Michigan could lose their Medicaid coverage as proposed in the “Big Beautiful Bill.”
McLaren Central Michigan has operated on negative margins in recent years, which means they have been spending more money than bringing in revenue, and that is one of the reasons the research names them to be at risk, according to MLive's reporting.
But McLaren officials wrote in an email to WCMU that it’s common for many rural healthcare providers to operate on negative profit margins and to depend on federal programs like Medicaid.
“While our rural providers have not been immune to the health care industry’s financial challenges of the past several years, those hospitals have remained steadily viable,” the email read. “Through those federal programs, these providers have been able to grow and expand — bolstering their medical staffs while enhancing their care capabilities. Proposed cuts would also put those initiatives in jeopardy.”
McLaren officials said they need these programs to be able to serve rural communities, and they’re appealing to lawmakers to reconsider the cuts.
