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Several hospitals in rural Virginia are at risk of closing if Trump’s ‘big beautiful bill’ passes

By Lucas Henkel

June 25, 2025

Studies reveal that at least half a dozen rural hospitals and health centers in Virginia will be forced to close their doors if the Trump administration’s “Big Beautiful Bill” is passed. In a letter, Youngkin supported the bill as a way to give Trump the “resources he needs.” 

As the so-called “Big Beautiful Bill” heads to Congress, analysis from several research groups reveals that the Trump administration’s reconciliation bill will do more than just cut Medicaid funding for the 2 million Virginians who rely on it. 

“Medicaid cuts are likely to have a proportionate impact—meaning that hospitals most reliant on Medicaid are both more financially fragile and more vulnerable to revenue reductions,” wrote researchers from the Cecil G. Sheps Center for Health Services Research at the University of North Carolina (UNC). 

In the report—which was requested and released on June 12 by several Senate Democrats—UNC researchers stated that substantial cuts to Medicaid payments could cause more rural hospitals to operate at a deficit and increase their risk of financial distress. 

Related: US House Republicans want to cut Medicaid. Why’s bad news for Virginia.

Of the 338 rural hospitals and health centers from across the US outlined in the study, at least six are in Virginia. This includes Southampton Memorial Hospital (Franklin), Southern Virginia Regional Medical Center (Emporia), Community Memorial Hospital (South Hill), Carilion Tazewell Community Hospital (Tazewell), Rappahannock General Hospital (Kilmarnock), and Lee County Community Hospital (Pennington Gap). 

Several of these facilities, like Southern Virginia Regional Medical Center and Rappahannock General Hospital, provide imaging services (like MRIs, ultrasounds, and 3D mammograms) that help prevent several types of cancer from spreading. Other facilities, like Carilion Tazewell Community Hospital, offer 24/7 hospital-based emergency psychiatric services for Virginians struggling with a mental health crisis. 

In its current form, the Trump administration’s reconciliation bill is expected to have long-lasting effects for Virginians, particularly as it reduces federal Medicaid spending on rural hospitals by over $50 billion over the next decade. Meanwhile, hospitals nationwide are projected to see a $63 billion increase in uncompensated care costs.

This means that hospitals may be forced to reduce service lines, convert to a different type of health care facility, or close altogether, putting life-saving health care even further out of reach for rural Virginians. 

Despite the harmful impacts on rural Virginia, Gov. Glenn Youngkin signed a letter of support for the bill, praising Trump for using it to “provide you (Trump) with the resources you need.”

Meanwhile, several Virginia state officials are revealing the real costs of the bill, which would come at the expense of everyday Americans. 

“This bill blows massive holes in state budgets while shifting more responsibility to states already grappling with the Trump administration’s funding freezes,” said Rep. Jennifer McClellan (D-Richmond), in a press release

McClellan also added that the bill further restricts access to comprehensive reproductive care by defunding Planned Parenthood and effectively banning marketplace insurance plans from covering abortion services. 

“Trump and House Republicans have made their priorities clear, putting the mega-rich and special interests over the hardworking people who sent them to Washington.” 

Read more: As southern states ban abortion, thousands of patients head north—to Virginia

  • Lucas Henkel

    Lucas Henkel is a Reporter & Strategic Communications Producer for COURIER based in mid-Michigan, covering community stories and public policies across the country. His award-winning work shows his passion for local storytelling and amplifying issues that matter to communities nationwide.

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