Oklahoma Mercy Hospital leaders brace for Medicaid cuts to mitigate potential service loss

Several Oklahoma hospitals face the risk of closure following the passage of sweeping federal Medicaid cuts. However, the changes in the new law won’t go into effect until late 2026 and beyond. 

One leader at Mercy Hospital said the cuts would eliminate certain healthcare services. However, he said the hospital system would pursue alternative ways to make up for future budget cuts.

Bobby Stitt, who manages Mercy Hospitals in Logan County, Kingfisher, and Watonga, said future cuts to Medicaid have made his job much harder. 

“It’s going to be a challenge,” Stitt said. “It’s the biggest we’ve faced. Anywhere from two to five million dollars per year for each one of my facilities is going to be the impact.” 

Medicaid cuts affect hospital revenue streams 

Stitt said healthcare cuts from the One Big Beautiful Bill Act will hurt his system’s ability to maintain facilities and provide the healthcare services people need. 

“It means we have to narrow the things that we know we can make work with this budget,” Stitt said. 

Potential hospital closures and loss of critical services in rural areas 

Stitt said the revenue losses will hurt rural healthcare facilities, especially Obstetrics and Gynecology (OBGYN) services. 

“Which means it’s less safe for moms to be out in those communities,” Stitt said. 

The Center for Healthcare Quality and Payment Reform estimates 60% of Oklahoma’s rural hospitals are at risk of closing. 

“I really have a great deal of concern when I think about those hospitals that are independent,” Stitt said. 

Stitt said the concerns from this budget package are felt within his health system's facilities. 

“They ask me, ‘What does this mean? Are we closing?’ What I say to them is, ‘Don’t lose focus. don’t lose focus on what’s important.’ What’s important is the community we serve,” Stitt said. “If we do the right things and we do them for the right reasons and we continue that way and we share openly and honestly what these impacts are gonna be, then we can believe and trust that our legislators will respond.” 

Hospital leaders advocating for budget amendments in future sessions 

Stitt said they will use the time they have to prepare for budget reductions as the new Medicaid rules take effect next year. 

“That means there’s more conversations that can be had,” Stitt said. 

Stitt highlighted their innovations in telemedicine. 

“Which saves money, which gives opportunity for our expertise to grow in various ways,” Stitt said. 

Stitt said they can’t control budgets in Washington, D.C, but he said they will continue to share their message with lawmakers. 

“And give them opportunities to make adjustments,” Stitt said. 

Stitt said his team has to do what they do best and care for Oklahomans. 

“We care about each other,” Stitt said. “I think we have an opportunity in every crisis.” 

Preventive healthcare limits emergency room visits 

Stitt said it’s important to preserve outpatient services. Otherwise, he said, people delay healthcare checkups. He said that causes people to seek out emergency rooms as a last resort when their health declines, because they don’t have access to preventive healthcare.

Stitt said if federal adjustments are not made, more cost burdens will shift to the state.