Nevada Hospitals Face Severe Risks From Medicaid Cuts in New Tax Law

Nevada’s hospitals are bracing for a major financial blow following the passage of a new federal tax law, often referred to as the “Big Beautiful Bill.” This legislation, championed by President Trump and Congressional Republicans, includes deep cuts to Medicaid—a move projected to strip more than $232 million in annual revenue from Nevada hospitals alone. The consequences could be devastating, especially for rural and community hospitals that rely heavily on Medicaid funding to keep their doors open.

What’s in the New Law?

The new law enacts over $1 trillion in cuts to Medicaid over the next decade, according to the Congressional Budget Office. Nationwide, this could result in nearly 12 million Americans losing health insurance by 2034, with the majority losing Medicaid coverage. According to reporting from the Nevada Current, Nevada stands to lose about $590 million in federal Medicaid funding, resulting in more than 114,500 patients in the state losing healthcare coverage.

In Nevada, the impact is particularly acute because the state already faces a shortage of doctors and relies on Medicaid to support hospitals in both urban and rural areas.

A recent report highlights just how much individual hospitals stand to lose each year:

These cuts threaten to force the closure of maternity wards, emergency rooms, and even entire hospitals, especially in rural communities where alternatives are hours away.

Why Does Medicaid Matter So Much?

Medicaid is a lifeline for millions of low-income Nevadans, including children, seniors, and people with disabilities. Hospitals depend on Medicaid reimbursements to cover the costs of care for these patients. When Medicaid funding is slashed:

• Hospitals lose a critical revenue stream.
• Uncompensated care rises, straining hospital budgets.
• Rural hospitals, already operating on thin margins, face the risk of closure.
• Patients may have to travel long distances for basic or emergency care.

Who Is Most at Risk?

The cuts will hit Nevada’s most vulnerable populations the hardest, including rural residents, who may lose their only nearby hospital; low-income families and seniors, who depend on Medicaid for health coverage; and hospital workers, as closures and service reductions could lead to layoffs.

The effects likely won’t stop at hospital doors. With fewer people insured, more Nevadans will delay or skip needed care, leading to worse health outcomes and higher costs down the road. The loss of Medicaid dollars also threatens local economies, as hospitals are often major employers in their communities.

What Happens Next?

State leaders and hospital administrators are scrambling to find ways to shield Nevada’s health system from the worst effects. Some states are considering new grant programs or budget fixes, but the scale of the cuts makes it unlikely that all losses can be offset. Without intervention, Nevada could see a wave of hospital closures and reduced access to care statewide.