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The Nexus
HEALTHAug 3 · 09:00 UTCKFF HEALTH NEWSSarah Jane Tribble and Tony Leys

Earlier Lifeline for Rural Hospitals Faces Test Under ‘Big Beautiful’ Law

Sturgis Hospital, a rural hospital in Michigan that converted to a federal emergency-focused model to stay open, closed in 2026 after declining emergency department use. The closure highlights concerns about the effectiveness of the Rural Emergency Hospital model under the One Big Beautiful Bill Act, which is expected to reduce Medicaid funding and strain rural healthcare facilities.

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