The Hospital and Healthsystem Association of Pennsylvania expressed cautious optimism regarding the 2026-2027 state budget passed in July, while emphasizing the need for additional state support to address ongoing financial pressures facing the state’s healthcare system.
HAP President and CEO Nicole Stallings acknowledged that the budget includes protections for essential hospital services, support for rural hospitals and restoration of distressed hospital funding that had been previously eliminated. However, she indicated these measures fall short of addressing systemic challenges.
According to HAP, Pennsylvania hospitals continue to face significant operational challenges. The organization cited an expert analysis from January projecting that 12 to 14 additional Pennsylvania hospitals could close by 2030 without intervention. At least one hospital has already closed since the analysis was released.
Stallings emphasized that hospital closures have already resulted in the loss of critical services across the commonwealth, including emergency care and labor and delivery services. She attributed these closures to Pennsylvania’s below-average payment rates for hospital services, which fall short of hospitals’ actual care costs.
HAP thanked legislators who prioritized hospital stability in the budget negotiations but indicated the association will continue advocating for additional policy solutions. The organization stressed that financially stable hospitals are essential for healthy communities and Pennsylvania’s economic competitiveness.
