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The passage of the “One Big Beautiful Bill” in early July sent shockwaves through rural communities nationwide. With nearly $1 trillion in Medicaid cuts and significant changes to Medicare reimbursement now law, rural hospitals like Cobre Valley Regional Medical Center (CVRMC) are bracing for a new era of financial uncertainty. Rumors have swirled on social media about possible hospital closures, layoffs, and service reductions. But, CVRMC CEO Neal Jensen states that the hospital is not closing its doors—and remains committed to serving the region.
“We are not going anywhere. Our doors are open, and we’re committed to serving the community,” he said. Jensen’s message is one of realism tempered with resolve. He acknowledged that the new law will bring “significant” reductions in federal funding, particularly through changes to Medicaid’s state-directed payments. “It’s hard to quantify exactly, but we know we’ll lose millions in state-directed payments. Still, it won’t put us at risk of closure. We provide core services for our community, and we aren’t looking to cut anything right now. We’ll continue to grow and bring in additional healthcare; we are not running backwards.”
The new federal budget bill is the largest rollback of Medicaid coverage in U.S. history, with the Congressional Budget Office estimating nearly 17 million people will lose health care coverage or subsidies. For rural hospitals, the impact is especially acute. Jensen explained, “About one-third of our revenue comes from Medicare and Medicaid. The biggest cut is the state-directed payments—over $12 million.”
These reductions are not immediate, giving the hospital and state policymakers time to plan and adapt. “We’ll have opportunities to work with our state in the meantime, and they will have to address shortfalls,” Jensen said.
One of the most immediate changes is the requirement that Medicaid recipients must reenroll every six months, with no pre-populated forms. Jensen is concerned about the state’s ability to process the increased paperwork and the risk that eligible patients may lose coverage simply due to administrative hurdles.
Jensen was candid about the disproportionate impact on rural hospitals like CVRMC compared to urban counterparts. “Yes, it will impact us more than others,” he said. Rural hospitals often serve a higher percentage of Medicaid patients and have less of a financial cushion to absorb funding cuts. The American Hospital Association and other groups warn that these changes could force some rural hospitals to reduce services, limit hours, or even close.
Despite these risks, Jensen remains confident in CVRMC’s resilience. “We’re strong, we’re healthy, and we’re in a good position to continue to grow.”
CVRMC is not facing these challenges alone. Jensen described ongoing collaboration with the American Hospital Association, the Arizona Hospital Association, and other state and national organizations to advocate for rural healthcare funding.
“We work with the hospital associations and will continue to work with the state to protect our rural hospitals. The impact is hard to foresee, but it’s not the goal to bankrupt hospitals. We are a safety net provider, and we’ll continue to be here for the community.”
Jensen urged residents to make their voices heard: “I would encourage concerned community members to contact their legislators and tell their story, tell us their story, and we’ll tell it for them. That’s the most impactful way they can make a difference.”
He encouraged residents to seek accurate information directly from the hospital or trusted associations. “As more details come out, they can ask us. It’s a recent bill, so there’s so much more to learn. We will continue to evaluate, get feedback, and talk to state and national leaders to make sure they understand the impact.”
Despite the daunting fiscal outlook, Jensen’s optimism is rooted in the hospital’s mission and the community’s history of resilience. “I think the important thing to note is that we will continue to offer the community high-quality healthcare.”
He also addressed recent reports listing CVRMC as a high-closure risk due to its high Medicaid usage: “There are other factors at play, so it was an unnecessary scare to the community.”
Jensen outlined steps community members can take to help safeguard local healthcare:
- Stay informed: Follow updates from CVRMC, the American Hospital Association, and the Arizona Hospital Association.
- Advocate: Contact elected officials and share your story about why rural hospitals matter.
- Support local healthcare: Use local services when possible and encourage friends and family to do the same.
- Ask questions: Reach out to CVRMC directly with concerns or for accurate information.
The next few years will be challenging for rural hospitals across America. For Globe-Miami, the future of local healthcare will depend on a combination of hospital leadership, community advocacy, and responsive state policy.
For more information or to share your concerns, residents are encouraged to contact CVRMC directly or consult with the American Hospital Association and Arizona Hospital Association.
Carissa Pool is an Arizona native who grew up in Glendale and now lives in Peoria. Carissa earned her bachelor of arts degree from Arizona State University West and in her 15-plus year career in marketing and public relations has worked with a range of clients across various industries, from construction to non-profits. While she takes great pride in her professional achievements, her greatest joys come from writing and cherishing her role as a mother to her two young daughters.
