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Louisiana’s rural hospitals face uncertain future due to Medicaid cuts

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The future of rural hospitals in Louisiana is being questioned in the wake of Medicaid cuts passed by the GOP.

Jeff Reynolds, executive director of the Louisiana Rural Hospital Coalition, said he doesn’t expect to see closures immediately since $200 million in federal funds has been set aside to ease the transition for the state’s 49 rural hospitals.

“ For the next four or five years, it's hard for me to say anything materially changed that would cause a rural hospital to shut down. Once we get four or five years out it’s up for debate. But that's a long ways (off) and there will be a lot of things that change between now and then,” said Reynolds.

Beginning in 2027, after the mid-term elections, Medicaid recipients will have their eligibility checked every six months and work requirements will go into effect for individuals receiving coverage through Medicaid expansion.

Thirty-three rural hospitals in Louisiana are at risk of closing, according to a letter from Sen. Edward Markey (D-Mass.).

Reynolds said if and when the closures happen, it will impact everyone who depends on rural hospitals.

“ When I say it affects everybody, if you reduce what Medicaid is paying there's less money for the providers to provide services to everybody, to expand services that have access and capacity. If a hospital shuts down, that shuts down for everybody, whether you have private insurance or Medicaid or Medicare,” said Reynolds.

Thirty-four percent of the state’s population –1.6 million of 4.6 million residents– is enrolled in Medicaid. Reynolds said approximately 300,000 people in Louisiana are uninsured which brings the total number of residents who are either uninsured or reliant on Medicaid to about 41% of the state's population. He said the breakdown of those served by a rural hospital who don’t have private insurance is even greater.

Reynolds said before those cuts take effect, federal and state leaders will need to come up with a plan to keep rural hospitals afloat.

Before joining WRKF as the Capitol Access reporter, Brooke was the Assistant News Director at Louisiana Radio Network, where she also reported on statewide news and covered the state legislature.