Trump Administration’s Proposed Health Care Cuts Pose Risks to Distressed Providers

Last week, the Trump administration and Congress proposed spending cuts that if enacted are likely to affect federally funded health insurance programs such as Medicaid and the Affordable Care Act (ACA). These cuts could disrupt cash flow for already vulnerable health care providers, bringing their financial problems into sharper focus as government payor programs face budget reductions. This may lead to increased rates of insolvency among health care institutions, particularly those that rely heavily on reimbursement from such programs.