Several Pittsburgh area hospitals could be at risk of closing, watchdog report claims

A report from Public Citizen, a consumer watchdog, has identified several Pittsburgh area hospitals that it says could be at risk of closing. The catalyst it identified for the potential closures are cuts to Medicaid and other government health programs. It's an analysis that the hospitals dispute.

On the list from Southwestern Pennsylvania are UPMC McKeesport, UPMC Mercy and UPMC Greene – along with Highlands Hospital in Connellsville, Fayette County.

Public Citizen cited cuts to Medicaid and other programs from a federal spending bill passed last year by Congress and the President that contributed to this list.

The report spelled out two main criteria that went into their conclusions -- if 20% or greater of a hospital's "payer mix" comes from Medicaid, CHIP, and the low-income government program from 2022 through 2024, and if the hospital also has negative net profit margins during those years.

UPMC called some of the methods in which the report was compiled "flawed."

"Speculating that certain UPMC hospitals, including UPMC Mercy, run the risk of closure because of recent federal budget cuts to Medicaid reimbursement are based on a highly suspect and flawed analysis that failed to recognize that every UPMC hospital operates as part of the strong integrated UPMC system," Susan Manko, a spokesperson, said.

"UPMC's 'systemness' allows each of our 40+ hospitals to leverage systemwide resources, systemwide infrastructure, and systemwide expertise to help ensure their long-term stability…and helps our caregivers to continue to provide their patients with high-quality care."

The parent company of Highlands Hospital Connellsville also commented on Public Citizen's report.

"Penn Highlands Healthcare hospitals have been entrusted to provide care to the area communities for more than 100 years, and we have a long-term commitment," Penn Highlands Healthcare said in a statement.

"While the health system is committed to helping serve the community health needs, rural healthcare is at a crossroads, and rural health systems like Penn Highlands need additional funding and support from local, state and federal government to continue to provide care."

Public Citizen has not yet responded to KDKA's request for additional information on their analysis.