The Trump administration has enacted a controversial regulation aimed at significantly reducing federal reimbursements to hospitals that predominantly serve low-income and uninsured patients. This move, officials argue, is intended to curb excessive federal spending; however, healthcare advocates warn it could lead to severe financial strain on safety-net hospitals. Many of these institutions rely heavily on government reimbursements to cover uncompensated care costs, and cuts could result in reduced services or even closures in vulnerable communities.

Key aspects of the new policy include:

  • Revising the formula for calculating Disproportionate Share Hospital (DSH) payments, lowering overall allocations.
  • Imposing stricter eligibility criteria…