Local Hospitals Facing Crisis
A recent report from the conservative organization Defend Forgotten America highlights a troubling trend: 90 hospitals across the nation are either closing or experiencing credit downgrades. This situation has led the organization to label it a “national health care access emergency,” urging President Trump and his administration to step in.
The report opens with a statement emphasizing the urgency of the issue, noting that “President Trump’s historic rural health transformation program could not have come at a more urgent time.” It cites the challenges faced by hospitals under the Biden administration, suggesting that these facilities are entering a cycle of crisis that is already showing signs in financial markets, long before they actually shut down. By 2025, the report states, at least 90 hospitals will be at risk, illustrating a troubling pattern of systemic failures that often precede the loss of crucial services.
According to the report, the Trump administration has begun addressing these challenges, such as implementing the Rural Health Transformation Program and announcing grants from the Centers for Medicare and Medicaid Services (CMS), led by Administrator Dr. Mehmet Oz. Launched in late 2025, this program promised $50 billion in grants to tackle the crisis nationwide. The data compiled by Defend Forgotten America, a grassroots organization headed by former NewsMax journalist Jen Pellegrino, raises significant concerns.
Pellegrino expressed in a statement that “when a hospital closes, the community loses far more than the building. They will lose emergency care, maternity services, jobs, and their ability to attract families and employers.” She urged all levels of government to take on this crisis, describing the Rural Health Transformation Program as a vital first step.
The report reveals alarming statistics from the past year: there were 29 credit rating downgrades and 61 instances of service loss or outright closure among rural hospitals across the country. Notably, 24 hospitals closed their doors permanently, with another 24 shutting down their obstetrics departments—often a sign of financial trouble. Other clinics also ceased operations, leading to the loss of emergency and essential services.
According to the report, “Credit rating downgrades by Moody’s and Fitch indicate a diminished ability of hospitals and health systems to meet their financial obligations.” This trend results in increased borrowing costs and limited access to capital, typically foreshadowed by service reductions or closures. It’s particularly concerning that obstetric services, which are resource-intensive, are frequently the first to go when financial strains rise.
The impact of these closures can be serious for newborns, resulting in higher rates of preterm birth and low birth weight. When hospitals or maternity wards are unavailable, women may find themselves facing increased travel times, sometimes by as much as an hour or more. This also correlates with lower compliance rates for prenatal visits, notably among high-risk pregnancies. The report suggests that local communities suffer as well; businesses prefer locations near stable hospital systems, making it harder to attract young families, medical professionals, and employers.
The report lists 90 hospitals nationwide that have faced closures or credit downgrades within the last year. These facilities span from Maine and Vermont in the northeast to states like North Carolina, Georgia, and Florida in the southeast, all the way to California, Oregon, and Washington, touching states like Tennessee, Illinois, Missouri, Oklahoma, Alabama, Kentucky, West Virginia, Minnesota, Montana, Ohio, South Dakota, and Indiana. Essentially, almost every state is feeling the impact, regardless of political affiliation.
The forthcoming steps taken by the Trump administration, particularly beyond the initial CMS grant as part of the Rural Health Transformation Program, will be pivotal for key figures, including Mr. Oz, Mr. Trump, HHS Secretary Robert Kennedy Jr., and Treasury Secretary Scott Bessent. There is a significant amount of attention focused on the White House, administration leaders, and Congress as they navigate this crisis moving into 2026.
