Iowa Healthcare Facilities Impacted by Medicaid Reductions
In the wake of the One Big Beautiful Bill Act (OBBB), seven healthcare facilities in Iowa have either closed, reduced their workforce, or scaled back their services. These changes are directly linked to the significant budget cuts to Medicaid, which the OBBB enforces. Iowa Representative Zach Nunn, who backed the bill, previously described concerns over potential hospital closures as a “myth,” a statement now under scrutiny.
The OBBB, which aims to reduce Medicaid funding by $1 trillion by 2034, is projected to result in up to 15 million Americans losing their health insurance. Experts in health policy had cautioned that such cuts would severely affect hospitals and clinics, particularly those in rural and low-income areas that heavily depend on Medicaid reimbursements.
In July 2025, Nunn told WHO13 News, “I think the myth here is that rural hospitals are going to close down. That’s not the case.” However, the unfolding situation appears to contradict his assurance.
Among the affected facilities is MercyOne, a Catholic nonprofit organization operating in Iowa. Recently, MercyOne has closed two locations in Ottumwa and Traer. Additionally, the organization has reduced staffing levels at facilities in Des Moines and Mason City. Patients in Ottumwa, located within Nunn’s district, now face travel times of up to an hour for medical care.
MercyOne attributed the staffing reductions in Des Moines to the Medicaid funding cuts. The organization stated, “It is not possible to simply absorb such a significant financial impact without making thoughtful, forward-thinking changes.”
Other institutions in the area have also been affected. The Pella Regional Medical Clinic in Ottumwa has announced reductions in family and general practitioner services. Simultaneously, the Southeast Iowa Regional Medical Center in West Burlington has ceased its birthing services.
Despite these developments, Nunn has continued to support the OBBB, even financing a series of television advertisements in August 2025 to promote the bill’s alleged advantages.
As Nunn seeks reelection for a third term, he is recognized as one of the more vulnerable Republican incumbents in the upcoming elections.
The full story can be accessed at American Journal News.
—
Read More Kitchen Table News
