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A CFO's Guide to Navigating Potential Medicaid Cuts

Analysis  |  By Marie DeFreitas  
   May 05, 2025

Medicaid cuts would severely damage access to healthcare, and healthcare leaders are speaking up.

The Trump administration's threat of Medicaid cuts is causing chaos. While Republican lawmakers insist they do not intend to cut the program, some of their proposals have the potential to block grants, raise hospital taxes, enforce per-capita caps, reduce the federal match for the ACA Medicaid expansion, and impose work requirements.

How are CFOs reacting to this threat?

What Healthcare Leaders Are Saying

Some healthcare executives are voicing their thoughts online on the potential Medicaid cuts.

Brett Tande, corporate executive vice president and CFO of Scripps Health, recently visited Washington to voice his concerns, posting:

"Spent time on Capitol Hill with fellow health system CFOs advocating against proposed Medicaid cuts. These potential reductions would have a serious impact on access to care for millions and result in the closure of vital services across the country."

Jeremy Nordquist, president of the Nebraska Hospital Association, wrote in a post:

"Trump voters don't want to cut Medicaid. Democratic voters don't want to cut Medicaid. Swing voters don't want to cut Medicaid. Nebraskans don't want to cut Medicaid."

Last month Damond Boatwright, president and CEO of Hospital Sisters Health System, a nonprofit system in Illinois, wrote in a HealthLeaders article:

"We urge Congress to maintain federal funding commitments for the Medicaid program to prevent structural changes that would rob coverage from those in need. Our federal lawmakers must remember their mission in representing all constituents for the common good."

Read the full article here.

Strategizing As A CFO

Proactively build a safety net

CFOs must act decisively to strengthen their hospital's financial resilience by building robust internal safety nets. This includes reassessing charity care policies, optimizing revenue cycle operations, and identifying sustainable funding sources to offset potential shortfalls. Ensuring the institution can continue to provide care for the most vulnerable populations, even in the face of reimbursement declines, will be essential to long-term stability.

Ensure insurance resources are available for patients

HCA's Medical City Denton, a Level II trauma center, offers a variety of specialty services, including cardiology, imaging, surgery and neurological care. Ensuring these services and reimbursement run smoothly can get tricky.

"We have financial counselors and public benefit coordinators to help support patients in obtaining insurance coverage while they are in the hospital," Whitney Bendel, the Texas hospital's CFO previously told HealthLeaders.

CFOs can ensure that programs and resources like this are in place to help patients navigate high care costs. By investing in navigation resources that help patients access alternative coverage, such as ACA marketplace plans, community health initiatives, or local subsidies, hospitals can maintain continuous care while helping patients avoid falling through the cracks.

Advocate with fellow healthcare executives

Lastly, CFOs can have a powerful role in patient advocacy. They should not underestimate the influence of their voice in public policy. By engaging with legislators, industry coalitions, and regulatory bodies, they can help visualize the impact of Medicaid cuts on patient outcomes and hospital viability. In this moment of uncertainty, the financial stewards of health systems must lead with strategy and purpose.

Marie DeFreitas is the CFO editor for HealthLeaders.


KEY TAKEAWAYS

The proposed Medicaid cuts would inevitably wreak havoc on the healthcare industry

Healthcare leaders from all over the country are expressing their opposition to the drastic cuts.

CFOs can prepare their health systems in a few ways, but using their voice to advocate for their organization may be the most best proactive step.


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