Study says Medicaid cuts put Sharon Hospital at risk of possible closure

SHARON — A University of North Carolina study listed Sharon Hospital among rural hospitals endangered by potential funding cuts to Medicaid.

The study by The Cecil G. Sheps Center for Health Services Research at UNC identified 338 rural hospitals nationwide where care could be adversely impacted by cutbacks in the “One Big Beautiful Bill Act.” Sharon Hospital was the sole Connecticut facility in the list.

Two criteria were considered: hospitals in the top 10% of Medicaid payer mix of rural hospitals across the country; and hospitals that experienced three consecutive years of negative margins. Sharon Hospital was included in the latter.

“This means these rural hospitals face greater risk of being forced to stop providing some services, converting, or closing,” the study stated.

A group of U.S. senators shared the data with President Donald Trump (R) in the form of a letter dated June 12. Senators Edward Markey (D-Mass.), Charles Schumer (D-N.Y.), Jeffrey Merkley (D-Ore.) and Ron Wyden (D-Ore.) signed the letter, which states, “Rural hospitals will not get paid for the services they are required by law to provide to patients. In turn, rural hospitals will face deeper financial strain that could lead to negative health outcomes for the communities they serve.”

Following several years of financial struggle, Sharon Hospital’s parent company, Nuvance Health, completed a merger with Northwell Health in 2025. Northwell is the largest private health care provider in New York State.

“We appreciate elected officials shining a light on this report as it relates to new legislation and cuts that would be devastating to rural hospitals. It is no secret that Sharon Hospital has been struggling financially for some time – largely due to underpayment from government and other payers. These new cuts only exacerbate the situation. We are hopeful that the benefits of our recent affiliation with Northwell Health will provide some stability as we weather this latest storm.” Daniel DeBarba, chief financial officer of Nuvance Health, part of Northwell.

Sharon Hospital President Christina McCulloch said although the cuts would “add strain to our financial stability,” she clarified, “The hospital is here to serve the community. I don’t want the community to not use our services that we have for fear that the hospital is closing. All of our services are open.”

Since 2018, the community organization Save Sharon Hospital has advocated to maintain full-service medical care in the Northwest Corner.

SSH President Lydia Kruge Moore shared, “It is deeply troubling that vital health care services remain at risk in rural communities like ours. Save Sharon Hospital is incredibly grateful that Northwell Health has recognized the importance of rural health care and has committed to maintaining all services at Sharon Hospital.”