EAST LIVERPOOL, Ohio - A new federal Medicaid proposal could put hospitals across Ohio at risk, including one right here in the Valley.

East Liverpool City Hospital is among 11 hospitals statewide that healthcare leaders said could be impacted if the proposal moves forward.

While the hospital says it is financially stable, leaders warn the changes could have lasting consequences.

A provision in President Donald Trump’s “Big, Beautiful Bill” would change the way hospitals are funded.

Currently, hospitals pay a fee to the state for Medicaid patients, which opens the door for additional federal funding.

Under the proposed changes, that extra money would be eliminated.

“Financially, it would have a huge impact from an operational standpoint,” said John Palmer with the Ohio Hospital Association," So you’re looking at operationally, how can they keep certain service lines intact, whether that’s emergency care, whether that’s specialty care, maternity, behavioral health services."

The OHA said the financial strain on hospitals is already significant. In 2024, the median operating margin across Ohio hospitals was zero percent.

“Which is pretty substantial,” Palmer said.

He said cuts to supplemental Medicaid payments could be devastating for rural hospitals.

“That could mean a reduction in hours or a complete closure altogether,” Palmer said.

East Liverpool City Hospital released a statement stating that while it is “financially sound and not at risk of closure,” it serves a high percentage of Medicaid patients and shares concerns from across the industry.

The hospital warns the proposed cuts could “impact the long-term viability” of all healthcare facilities and “will have an adverse effect on the health of all communities.”

The full statement is as follows:

"Coshocton Regional Medical Center and East Liverpool City Hospital remain committed to providing exceptional and compassionate care to the communities we are honored to serve. Our dedication to every patient is unwavering, and we continually work together with local leaders and our healthcare partners to ensure the best possible outcomes for our customers."

"While Coshocton and East Liverpool hospitals are financially sound and not at risk for closure, both hospitals do serve a high percentage of Medicaid patients in our respective communities, reflecting our strong commitment to providing a safety net for our most vulnerable community members. We share the concerns of the hospital industry that proposed cuts to Medicaid in H.B.1 will have an adverse effect on the health of all communities and hospitals across Ohio, where Medicaid hospital payments are expected to be reduced by more than 20% under the current proposal."

"These proposed cuts could impact the long-term viability of all healthcare facilities and hospitals across the United States, especially those in rural areas. With a collaborative and community-focused spirit, we urge our federal lawmakers and industry colleagues to work together on refining the Medicaid proposals in H.B.1. By engaging in open dialogue, we can ensure that any adjustments made protect the health, safety, and access to care for everyone in our state and country."

Lawmakers are weighing in, including Senator Michael Rulli.

Rulli did not say how he plans to vote, but said he is monitoring the bill in the Senate.

He added that lawmakers are working to solve challenges and that the changes are meant to ensure dollars are properly allocated by eliminating “fraud, waste and abuse.”

Meanwhile, Republican State Representative Monica Robb Blasdel said she strongly opposes any policy that endangers rural health care.

Robb Blasdel added that cuts like this could mean closures and lost access to healthcare.

The Ohio Nurses Association released a statement that said:

"The Ohio Nurses Association, representing thousands of frontline nurses and health professionals, strongly opposes any legislation that would gut access to care, including the “Big Beautiful Bill” and its dangerous cuts to Medicaid—especially those targeting rural hospitals like East Liverpool City Hospital.

“These cuts aren’t just bad policy—they’re a direct attack on the health and safety of entire communities,” said Rick Lucas, RN, President of the Ohio Nurses Association. “The ‘Big Beautiful Bill’ would force hospitals to close, delay care, and put lives at risk. Ohioans in rural areas deserve care close to home—not political games.

If passed, this bill would gut essential Medicaid funding, push rural hospitals toward closure, and leave patients without access to life-saving care. Nurses know: cutting funding doesn’t eliminate the need for care—it just shifts the burden and increases suffering."

The bill is still under debate in Congress.