Senator John Ossoff, a Democrat, seems to overlook key details regarding recent GOP Medicaid changes that have led to diminished services at rural hospitals in Georgia.
St. Mary’s Healthcare System announced on September 11 that it would be halting labor and delivery services at its Sacred Heart Hospital in Lavonia, Georgia. Ossoff, who is viewed as a vulnerable Democratic incumbent ahead of the 2026 elections, quickly condemned what he termed a “big beautiful bill” that he claims misrepresents the facts surrounding Medicaid reform, neglecting the hospital’s own financial difficulties.
“Georgia isn’t largely impacted by the big, beautiful bills often noted regarding rural hospitals,” said Hayden Dublore, a director at the Government Accountability Foundation. “Medicaid regulations don’t affect this specific hospital or most others in Georgia,” he added.
In its announcement, St. Mary’s cited several reasons for the decision, including demographic changes in the area, difficulties in recruiting physicians, increased retirements, and recent Medicaid cuts imposed by Congress.
For the past 18 months, the hospital system has been evaluating these changes, as highlighted in their announcement concerning the Republican Budget Act.
Financial records reveal that St. Mary’s Sacred Heart Hospital has been struggling financially, reporting negative revenues in four of the past five years, with a revenue decline of over 11% anticipated from 2023 to 2024.
Despite this, Ossoff has been focusing on the Republican-led Medicaid reforms, many of which won’t take effect until January 2027.
On September 17, he posted on social media that St. Mary’s was closing its labor and delivery services due to cuts linked to Trump’s Medicaid policies.
The “One Big Beautiful Bill,” signed by President Trump, intended to save over $1 trillion by targeting waste in Medicaid and included tax cuts for various demographic groups.
Republicans have touted the Budget Act for providing Georgia taxpayers with significant tax reductions, with averages reported at $3,086 for 2026, according to the Tax Foundation.
Data from KFF suggests Georgia’s preparedness for Medicaid law changes has been minimal, as the state has opted not to expand Medicaid under the Affordable Care Act, limiting coverage for many residents.
Critics have raised concerns about the law’s “Provider Tax” provisions but noted that Georgia’s existing tax rates won’t change due to these revisions.
Dublore criticized Ossoff’s claims as misleading, emphasizing that the hospital’s decision arises from long-term assessments rather than recent legislation.
St. Mary’s Healthcare System did not offer any comments for further clarification.
Ossoff’s statements about the travel distance for pregnant women in need of care have also been scrutinized. He expressed concerns over potential delays in reaching a facility for childbirth, suggesting a problematic lack of access due to the closures.
Dublin noted that St. Mary’s is negotiating to integrate OB/Gyn services about an hour away while another provider offers delivery services just 20 miles down the road.
Additionally, the hospital will continue providing emergency labor and delivery services.
The OBBBA included a $50 billion Rural Health Transformation Program aimed at assisting rural healthcare providers tackle many of the challenges faced by St. Mary’s.
Dublore stated that the Rural Health Change Fund would specifically support hospitals like Sacred Heart in St. Mary, ensuring further assistance.
The Centers for Medicare and Medicaid Services opened applications for this fund on September 15.
Georgia Republican Senator Buddy Carter accused Ossoff of dishonesty regarding the impact of Medicaid policy changes. He urged state providers to utilize the Rural Health Transformation programs rather than resorting to political rhetoric.
Carter is one of three Republican candidates vying for Ossoff’s Senate seat alongside Rep. Mike Collins and former football coach Derek Dooley.
The National Republican Senatorial Committee has condemned Ossoff for allegedly misrepresenting the effects of Medicaid reform in the Budget Act.
According to them, President Trump is working to improve Medicaid for those who truly need it, while Ossoff is evading accountability for the failures affecting rural healthcare.
Ossoff recently supported a $1.5 trillion proposal from Senate Democrats intended to fund the government, following the disbanding of the rural health transformation initiative. This plan reinstated previous Republican Medicaid reforms and included cuts to foreign aid and public broadcasting.
A spokesperson for Ossoff responded to the GOP’s claims, suggesting the hospital’s own statements about Medicaid cuts undermine their argument, and insisted that his campaign will continue to highlight these issues.
