From staff reports
Mississippi hospitals are bracing for a cut in federal funding, anticipating a crisis that’s hardly unprecedented, initiating concerns that reach beyond medical facilities’ budgets all the way through economic health and growth for communities.
In communities like Kosciusko development officials recognize the opportunities that hinge already on healthy hospitals.
As hospitals across the nation seek to address the estimated $1.3 trillion cuts, the picture appears more muddled in Mississippi than most states.
“All that’s up in the air,” said state legislator Jason White, of Kosciusko, Speaker of the House of Representatives.
Mitigating factors include an air of uncertainty as the states await word of the final outcome of debate at the national level on the cutting of the funds if not renewed by Dec. 31.
Both houses of Congress are wrestling over the issue, which was also a centerpiece of debate during the recent governmental shutdown that ended in November with passage of interim funding of the U.S. government healthcare.
With the end of that standoff Republican leadership promised debate on funding, but recent reports indicated portions of the GOP, urged on apparently by President Donald Trump, initially showed little to no interest in of discussing the matter officially before the end of the year.
However, Tuesday, Dec. 9, the GOP and Democratic Party introduced competing plans that went before the U.S. Senate with both failing. Both parties are expected tos introduce plans in 2026.
The Republican plan was predicted to lower premiums by 11 percent, to allow citizens to choose their own insurance plans, while requiring states to verify citizenship and immigration status and preventing use of funds for gender affirmation care and abortions.
The Democrats’ plan was expected to maintain the status quo, with ACA tax credits continuing for three more years, billed as a clean, quick solution.
Neither plan seemed likely to pass in Congress, pundits offered.
The situation is further clouded, White offered, as Trumps’ One Big Beautiful Bill, which set the end-of-the-year deadline for the ACA portion of the Medicaid budget, included a $50 billion allocation for a rural health transformation fund, acknowledgement that loss of current ACA funding would strike hardest at small, rural hospitals.
He said that proposal called on each state to set up plans to administer the monies, adding that many states had done that already and opened them to public perusal.
Directives to the states for designing administration, he continued, came out after the Mississippi Legislature adjourned the 2025 session, so Gov. Tate Reeves and a panel of his choosing developed a process which has not been made public.
“I believe he will unveil it pretty soon,” White said. “That could be as early as next spring.”
A spring reveal could be close to or at the end of the 2026 legislative session.
White also said that if a state’s plans drew particular support from federal officials, allotments to a state could be as much as doubled.
He said Reeves’ proposal did not appear to enjoy much input from smaller hospitals. Now state officials are “getting worn out by rural hospitals pleading for relief”
Across Mississippi, the House Speaker said, between 100,000 and 200,000 residents could see their federal subsidies “go away,” that would leave them paying for “a still pretty cheap policy.”
Those affected citizens, he suggested, would nonetheless likely allow their policies to lapse, though they will continue to visit hospitals and clinics for health care that would go largely uncompensated as far as the care facilities were concerned.
“For our providers,” White said, “especially in our back yard, rural areas, the outlook is looking pretty bleak.”
It’s not an unfamiliar scenario, suggested Richard Roberson, president and chief executive officer of the Mississippi Hospital Association. “Seems like every time we look like we’re getting through a dark time, someone comes along and pulls the shades down.”
He also noted the role of national politics in the looming crises, including the ACA and the recent federal governmental shutdown.
The dark times have begun again to descend, White offered, when Trump asserted that covid response was an “emergency measure,” and since the emergency had passed, “let it go away,” which it did Dec. 31.
However, good, bad or indifferent, Mississippi is in a unique position, Roberson said. During the pandemic response the Magnolia State was among the few which did not accept an offer to expand Medicaid coverage or set up a state exchange, much of it stemming from state leadership’s perception that Affordable Care Act itself was simply too liberal.
Mississippi medical facilities, he said, switched in late 2023 to compensation methodology “based on average commercial rates,” which increased Medicaid revenues across that state by about $800 million.
White said Mississippi legislators had passed a measure to set up a state exchange, but Gov. Reeves had yet to implement it.
If the ax falls at the end of the year and if the state had expanded Medicaid coverage, Roberson said, “It’s hard to know what we would giving up,” still “we would probably have had a pretty good run the last 10 or 11 years if we had” expanded.
The impact may also vary on whether some hospitals are essentially independent or part of a system, like Baptist Memorial Medical Health Care or North Mississippi Health Services, he said
The planned rural health care support in the present plan will be helpful but will strain to cover the increasing shortfalls posited on decreasing Medicaid overall, eventually, Roberson said, hitting about $700 million a year across Mississippi.
The pressure will be especially severe in Mississippi, he continued, for the last 25 years the state’s “hospitals have had the lowest costs in the country.”
The consequences could hardly be more dire for those trying to grow or maintain a community’s economy said Attala County economic development official Mary K. Dean. “It is incredibly important. It’s one of our largest employers. It provides a good, safe place to go without having to go out of town. I can’t imagine what it would do to us” if the hospital suffered economically.
“Health care has to be local,” Roberson asserted. “It really helps them (patients) to heal better to be supported by their family, friends and church members.”
Editor’s note: This coverage is supported by a grant from Press Forward Mississippi, part of a nationwide philanthropic effort to strengthen local news so communities stay informed, connected and engaged.
Jenna Stanley , Copyright 2026 Emmerich Newspapers Inc.
Event at the Baptist Attala lobby.
Joseph McCain , Copyright 2026 Emmerich Newspapers Inc.
Mary Katherine Dean.
