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Loretto Hospital Warns of Program Cuts as Shutdown Fuels Medicaid Uncertainty

Hospital leaders cite Illinois’ lowest-in-the-nation Medicaid rates alongside zero reserves as leaving operations exposed.

Overview

  • On day 15 of the federal shutdown, hospital officials said payment uncertainty and possible Medicaid reductions are tightening day-to-day cash flow.
  • Roughly 70% of Loretto’s approximately 13,000 patients rely on Medicaid, a heavy mix that is especially difficult in a state with the nation’s lowest reimbursement.
  • CEO Tesa Anewishki said the nonprofit has no reserves, so unexpected costs such as equipment repairs force repeated efforts to plug funding gaps.
  • Leaders cautioned that services and community programs could close without new support, citing rising needs in mental health, substance use treatment, and care for migrants.
  • Rep. Raja Krishnamoorthi toured the West Side facility and urged extending Affordable Care Act premium tax credits, while Loretto seeks more commercial revenue through a new Women’s Wellness Center and a planned medical detox unit.