Illinois Governor JB Pritzker met with southern Illinois healthcare leaders on this week to address the impact of federal budget cuts on rural hospitals. He warned that nine facilities across the state face closure risks that could eliminate over 500 hospital beds and 2,500 jobs.
The roundtable discussion, held at Marshall Browning Critical Access Hospital in Du Quoin, brought together state health officials and local hospital executives to confront the consequences of what critics call President Trump’s “big, beautiful bill”. The legislation slashes Medicaid spending by nearly $1 trillion nationwide, with rural hospitals projected to lose $155 billion in funding over the next decade.
The Illinois Department of Healthcare and Family Services estimates that more than 270,000 Illinois residents will lose Medicaid coverage under the federal cuts, with Medicaid spending in rural areas of the state decreasing by $6.36 billion.
“Rural hospitals are a critical lifeline for communities across Illinois. Not only are they one of the only providers of life-saving medical care for miles, they are often the backbone of rural economies,” said Governor JB Pritzker. “With Donald Trump and Congressional Republicans making devastating cuts to Medicaid, many of these rural healthcare providers will be at risk of closure, causing patients to lose care and staff to lose jobs. Make no mistake: Illinois will work hard to mitigate the impacts of these cuts. We will leave no stone unturned in ensuring that rural areas remain healthy and thriving.”
According to analysis by the University of North Carolina’s Cecil G. Sheps Center for Health Services Research, nine rural hospitals in Illinois are at immediate risk of closure due to the federal funding cuts. These facilities represent a total loss of more than 500 hospital beds and account for 11% of the state’s rural inpatient hospitals.
The geographic impact extends beyond simple numbers. For four of the nine at-risk hospitals, the next nearest medical facility is more than a 30-minute drive away.
“Rural hospitals are not just healthcare facilities,” said IDPH Director Dr. Sameer Vohra. “They are the lifelines for the communities they serve. Rural hospitals throughout Illinois serve as anchor institutions in their communities, providing both critical medical services and being a major source of employment and economic development. These federal cuts have the potential to be devastating to Illinois’s rural communities. Under Governor Pritzker’s leadership, IDPH will continue to work with our rural health leaders and other state and local partners to stand up for the health needs of our residents.”
The Illinois situation reflects a national crisis affecting rural healthcare infrastructure. More than 300 rural hospitals nationwide are at immediate risk of closure due to the federal cuts. Rural communities are disproportionately vulnerable because nearly one in four rural Americans relies on Medicaid for healthcare coverage.
While the federal legislation includes a $50 billion Rural Health Transformation Program intended to offset some losses, experts argue this funding falls far short of addressing the $155 billion projected loss in rural Medicaid spending. The program distributes $10 billion annually over five years starting in fiscal year 2026, but comes with significant administrative requirements and provides the Trump administration broad discretion over fund distribution.
