These 5 hospitals across NC could close with House Republicans’ funding cuts

Proposed cuts to Medicaid and Medicare could put hundreds of rural hospitals across the country at risk of closure, according to data UNC Chapel Hill – including five in North Carolina.

According to a recent letter from Senate Democrats addressed to Republican legislators, passage of the One Big Beautiful Bill Act, which President Donald Trump has thrown his support behind, would result in more than $1 trillion in funding cuts for Medicaid and the Affordable Care Act and slash Medicare funding by more than $500 billion.

In December 2023, North Carolina became the 41st state to expand Medicaid, extending health coverage to adults ages 19 to 64 earning up to 138% of the federal poverty level, The News & Observer previously reported. As of last month, more than 650,000 North Carolinians had enrolled in the program.

“Enacting these drastic health care cuts that will kick millions of people off their health insurance coverage, rural hospitals will not get paid for the services they are required by law to provide to patients,” Democrats wrote in the letter to Republican legislators. “In turn, rural hospitals will face deeper financial strain that could lead to negative health outcomes for the communities they serve.”

Here’s what to know about the North Carolina Hospitals at risk of closing.

Which hospitals in NC are at risk of closing?

According to UNC, the following hospitals in North Carolina could close as a result of the bill:

• UNC Rockingham Hospital in Eden

• Person Memorial Hospital Inc. in Roxboro

• UNC Health Chatham in Siler City

• MH Angel Medical Center LLLP in Franklin

• Blue Ridge Regional Hospital in Spruce Pine

“Substantial cuts to Medicaid or Medicare payments could increase the number of unprofitable rural hospitals and elevate their risk of financial distress. In response, hospitals may be forced to reduce service lines, convert to a different type of health care facility or close altogether,” Democrats wrote.

A spokesperson from Person Memorial Hospital said “it is premature to speculate or discuss any impact on our hospital or its services,” and a UNC Health spokesperson said Chatham “is not in danger of closing,” WRAL reported.

“It is true that the magnitude of federal cuts to various health programs, including the Medicaid program, could have an adverse impact on hospitals, especially rural hospitals, across the country. However, those owned by large health systems are much better protected against the risk of closure,” the UNC Health statement continued.

Why might NC hospitals close?

Two financial criteria were used to determine at-risk rural hospitals, according to the report:

1. The hospital is among the top 10% of rural hospitals in the U.S. that treat the most Medicaid patients.

2. The hospital has lost money for three years in a row.

Data from the report show that all five hospitals in North Carolina lost money during the last three years.

How safe are these hospitals?

A recent report from The Leapfrog Group, a national health care watchdog, assigned an A through F letter grade to general hospitals in the U.S. based on how well they prevent medical errors, accidents, injuries and infections that kill or harm patients.

According to the spring 2025 hospital safety grades, Personal Memorial Hospital Inc. and Chatham Hospital Inc. both received “B” grades, while UNC Rockingham Hospital got a “C” grade. Grades were not available for MH Angel Medical Center or Blue Ridge Regional Hospital.

Many other hospitals in the Charlotte and Raleigh areas received high marks, The Charlotte Observer previously reported.

This story was originally published June 17, 2025 at 4:35 PM with the headline "These 5 hospitals across NC could close with House Republicans’ funding cuts."

Evan Moore

The Charlotte Observer

Evan Moore is a service journalism reporter for the Charlotte Observer. He grew up in Denver, North Carolina, where he previously worked as a reporter for the Denver Citizen, and is a UNC Charlotte graduate.