GREENFIELD — Despite concerns circulating about the future of Baystate Franklin Medical Center after the passage of the so-called One Big Beautiful Bill Act that cuts roughly $1.1 trillion in health care spending, Baystate Health’s chief financial officer advises the Greenfield hospital is not at risk of closure.
Laurie Martin said in a statement Monday that Baystate Health became aware that Baystate Franklin was designated as an “at-risk rural hospital” as part of education efforts on the bill’s implications were spearheaded by Senate Democrats. However, she stated it is “not at risk of closing.”
“Baystate Franklin is one of the five hospitals within our system and a vital part of our integrated delivery network of hospitals, physicians and health plans,” Martin said, adding that Baystate Franklin’s 700 active staff members have identified “significant growth opportunities” over a nine-month strategic planning process to enhance patient services.
According to the Associated Press, President Donald Trump and Republicans in Congress say the changes in the tax and spending cut bill that was signed into law on July 4 are necessary to quell fraud, waste and abuse. Democrats have warned that cuts to Medicaid, which some 80 million Americans rely on, would result in lives lost. However, Democrats fell short in attempting to gain Republican votes against the legislation.
The package, which rolls back the Medicaid expansion from Barack Obama’s Affordable Care Act, is expected to result in 11.8 million more people going without health coverage by 2034, according to the nonpartisan Congressional Budget Office.
In Massachusetts, MassHealth, the state’s Medicaid program, is expected to feel the impact of the federal spending and tax cuts to the tune of a $1.75 billion loss, and with 250,000 MassHealth enrollees losing their insurance coverage, according to Gov. Maura Healey’s office.
In Franklin County and parts of the North Quabbin region, nearly half of those insured rely on public health insurance, including Medicaid, at 48.3% — more than 10% above the state average of 38.1%, according to the Massachusetts Health Data Community Report provided via the state Department of Public Health.
The “at-risk rural hospital” designation for Baystate Franklin comes from data the Cecil G. Sheps Center for Health Services Research at the University of North Carolina compiled at the request of Senate Democrats, including Massachusetts Sen. Ed Markey. The data identified the Greenfield hospital as being one of the 338 nationally labeled at risk of “financial distress and even closure, conversion or service reductions” because of the bill’s $500 billion Medicaid slash.
Baystate Franklin, which was named among the 2025 Top 100 Rural & Community Hospitals by The Chartis Center for Rural Health, was the only Massachusetts hospital on the list of at-risk facilities, with the majority of them located in Kentucky, Louisiana and California.
This data was passed along through Markey’s office to House Speaker Mike Johnson and Senate Majority Leader John Thune on June 12. The letter, co-signed by U.S. Sens. Chuck Schumer, Jeffrey A. Merkley and Ron Wyden, states that the Sheps Center data was requested to “illustrate” what could happen to rural hospitals if the bill was signed into law.
Two criteria points — if the hospital serves a disproportionately high share of Medicaid patients or if the facility has experienced three consecutive years of profit loss — were used to identify the at-risk rural hospitals.
Even if a hospital met only one of the criterion, it was still designated as being at risk. Baystate Franklin only met the three consecutive years of financial loss criterion, but not the one for having a high share of Medicaid patients. Baystate Health CEO Peter Banko said last fall that the hospital system had more than $300 million in operational losses in the past few years.
“The harm Trump and Republicans will cause to rural hospitals and communities with these cuts is extensive, and it will be a challenge to make up for what they so crudely and callously cut,” Markey’s office said in a statement. “I will continue to work with my Democratic colleagues and state partners to support Baystate Franklin and ensure patients, workers and the community are protected and can continue to access the care they need.”
Although Martin states the hospital is not at risk of closure, she said the cuts in the bill will be most felt by hospitals, physicians and providers, as there could be a reduction in programs, services and jobs “across our industry.”
“Like all health systems and hospitals across the commonwealth and around our country, we are now starting to assess what the specific impact of this legislation might be to Baystate Health,” Martin said, adding that the total estimated loss to Baystate Health could be between $30 million and $50 million, but that the ramifications will be fully realized in the coming weeks and months.
Baystate Franklin emergency department nurse and Massachusetts Nurses Association Bargaining Committee Co-Chair Suzanne Love, echoing Martin, confirmed that the hospital is not closing and that she has been discussing the matter with hospital leadership. She believes the Sheps Center data that Markey requested prior to the bill’s passage serves as more of an “example” on what some of the impacts could look like.
“Our hospital benefits from being part of the bigger system of Baystate where more monies are shared, but services are expanding at [Baystate] Franklin,” Love said.
She added that layoffs within the last nine months that impacted non-bedside staff have focused hospital funds back on patient care. Baystate Health announced in November that it planned to lay off 134 employees in management positions.
Although the bill is expected to impact the hospital’s bottom line, Love believes Baystate Franklin is in good financial position. Moving forward, Love is still curious to see how the Medicaid cuts will impact the ability for residents to access primary care, and if this will result in an increase to those using the emergency room for non-emergency health concerns. She referred to the regional network of urgent care locations as being a “backbone” to operations.
“It’s so important you have care that’s right there that you can easily access,” Love said about the value of rural hospitals. “So many health care needs are really timely. … You need something that’s close by to help right away.”
Outside of Baystate Franklin, the Community Health Center of Franklin County is also facing possible service reductions when the Medicaid changes take effect as early as 2026.
Community Health Center of Franklin County CEO Dr. Allison van der Velden said Monday that the known impacts to the center’s services remain to be seen. One-third of patients seen by the health center, across its three locations in Greenfield, Turners Falls and Orange, have MassHealth for their insurance. Health center staff members are looking for ways to diversify revenue through private donors and grants, and investing in employees who can help people navigate health insurance paperwork.
“We’re battening down the hatches,” she said.
Van der Velden also expressed concern over Baystate Franklin being labeled an at-risk rural hospital. She mentioned how the Community Health Center of Franklin County and residents depend on it, and the impact of the bill ultimately falls on those in the most rural parts of the county who would have to travel long distances for care or delay care altogether.
“When people lose their insurance, people still get sick,” she said.
In response to Baystate Franklin being listed as an at-risk hospital, Franklin County Continuing the Political Revolution, a grassroots organization focused on progressive causes, will hold a rally in support of the hospital on Thursday, July 17, from 5 to 6 p.m. on the Greenfield Common.
Erin-Leigh Hoffman can be reached at ehoffman@recorder.com or 413-930-4231.
