Medicaid Cuts Set to Drain Revenue at Elite Teaching Hospitals

Few in the US healthcare sector are immune to the effects of Washington’s recent cuts to Medicaid, even the cash-rich teaching hospitals affiliated with top-notch medical schools.

These facilities, often known as academic medical centers or AMCs, are usually seen as the cream of the industry crop for their top-tier credit ratings and ability to churn out revenue. But federal cuts to the public health insurance program for low-income and disabled people will lead to less funding for teaching hospitals around the country. In response, they’ve already started to reduce staff and scale back operations.

Lab technicians at the Vanderbilt University Medical Center in Nashville in 2020.

Photographer: Brett Carlsen/Bloomberg

In June, Vanderbilt University ...