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Prairie State Wire

Monday, October 20, 2025

Governor Pritzker meets southern Illinois leaders over impact of federal budget cuts on rural hospitals

Governor JB Pritzker met with healthcare leaders and state officials in Du Quoin to discuss the effects of recent federal budget cuts on rural hospitals in Illinois. The event, hosted by Marshall Browning Critical Access Hospital, focused on how reductions to Medicaid funding could impact healthcare access and local economies across the state’s rural areas.

According to Governor Pritzker, “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. 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.”

Marshall Browning is one of 55 critical access hospitals serving underserved regions in Illinois. During the roundtable discussion, hospital CEOs and staff expressed concerns about how federal funding reductions could affect their ability to serve patients.

The Department of Healthcare and Family Services (HFS) estimates that more than 270,000 residents may lose Medicaid coverage due to these changes. Medicaid spending in rural parts of Illinois is projected to drop by $6.36 billion as a result. Many rural hospitals already operate with limited financial resources, so further reductions in federal support could threaten their survival.

An analysis from the University of North Carolina's Cecil G. Sheps Center for Health Services Research found that nine rural hospitals in Illinois face possible closure because of federal funding cuts. This would mean a loss of over 500 beds—about 11% of inpatient capacity at rural hospitals statewide—and would make it harder for many residents to reach emergency care facilities, especially since some affected communities would have their nearest hospital more than 30 minutes away.

The closures would also have economic consequences; the nine at-risk hospitals employed approximately 2,532 full-time equivalent workers during fiscal year 2022.

IDPH Director Dr. Sameer Vohra said, “Rural hospitals are not just healthcare facilities. 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."

HFS Director Elizabeth M. Whitehorn added: “Standing up for rural hospitals means standing up for the communities that depend on them. We know that the newly enacted federal Medicaid cuts will be devastating for rural communities and for the Medicaid customers who rely on these hospitals for critical healthcare services. Our top priority is mitigating the harm that will most certainly be caused by these changes.”

Governor Pritzker has continued his efforts across Illinois by meeting with citizens about how recent federal policies have affected programs such as food assistance, social security benefits, farming operations, education opportunities for students, and small businesses nationwide.

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