Two Finger Lakes hospitals — Newark-Wayne Community Hospital and Schuyler Hospital — have been identified as “at risk” of service reductions, layoffs, or potential closure under a new report analyzing the impact of proposed federal Medicaid cuts.
The report, released by consumer advocacy group Public Citizen, lists 45 hospitals across New York that could face financial strain if more than $900 billion in federal Medicaid and CHIP funding reductions are implemented over the next decade.
Newark-Wayne Community Hospital in Wayne County and Schuyler Hospital in Montour Falls were among 29 facilities outside New York City and Long Island flagged as particularly vulnerable.
Why these hospitals are on the list
According to the report, hospitals were categorized as “at risk” based on two key factors: a high reliance on Medicaid funding and ongoing financial losses.
Facilities where at least 20% of revenue comes from Medicaid or the Children’s Health Insurance Program — combined with operating deficits over a multi-year period — were considered especially exposed to funding cuts.
That combination is common among smaller, rural hospitals like Newark-Wayne and Schuyler, which often serve higher proportions of low-income, elderly, and medically vulnerable patients. These hospitals typically operate with thinner margins and fewer alternative revenue streams compared to larger urban systems.
What the cuts could mean locally
State officials and hospital groups estimate the federal changes could cost New York hospitals roughly $13.5 billion annually in lost funding and increased costs once fully implemented.
Industry leaders say the impact would not be limited to Medicaid patients.
Hospitals facing large funding gaps may be forced to scale back services, reduce staffing, or delay investments in equipment and infrastructure. In more severe cases, closures could be on the table — particularly for smaller facilities already operating at a loss.
Healthcare Association of New York State data shows about half of hospitals statewide are already losing money, underscoring how little room many have to absorb additional cuts.
Broader concerns for rural healthcare access
The inclusion of Newark-Wayne and Schuyler Hospital highlights a broader concern about access to care in rural and smaller communities.
Hospitals in these areas often serve as critical access points for emergency care, primary services, and specialty treatment. If services are reduced or facilities close, residents may face longer travel times for care and increased strain on neighboring health systems.
Advocates warn that the ripple effects could extend beyond healthcare, impacting local economies, employment, and overall community stability.
What comes next
Hospital associations and healthcare unions are pushing for state and federal action to offset or reduce the impact of the proposed cuts. While mitigation efforts may soften some effects, industry leaders say the scale of the reductions makes it unlikely the impact can be fully avoided.
For communities like Newark and Montour Falls, the stakes are clear: maintaining access to local healthcare could depend heavily on how those policy decisions play out in the months ahead.
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