Senate Resolution No. by Senator Cathey urges the federal government, including Congress and the Centers for Medicare & Medicaid Services (CMS), to reconsider any policies that may lead to reductions in Medicaid funding for Louisiana's forty-nine rural hospitals. The resolution highlights the critical role these hospitals play in providing essential healthcare services to rural communities, particularly in light of a Presidential Memorandum issued on June 6, 2025, which proposes reductions in Medicaid reimbursements. Such funding cuts are projected to result in an estimated $120 million or 21% annual reduction in funding, which could exacerbate existing challenges faced by rural hospitals, including workforce shortages and financial instability.

The resolution emphasizes the importance of sustaining current Medicaid funding levels to ensure continued access to comprehensive healthcare services in rural areas, as reductions could lead to service cutbacks, staff reductions, or even hospital closures. It calls for collaboration between state and federal governments to address healthcare disparities and urges the federal government to engage with state officials and community stakeholders to develop solutions that meet the healthcare needs of rural populations without undermining the financial stability of these vital healthcare providers. A copy of the resolution will be transmitted to key federal officials to advocate for the preservation of Medicaid funding for rural hospitals.