Impact Advisors releases its analysis of the "One Big Beautiful Bill Act of 2025" (OBBBA) federal budget legislation and its potentially extreme consequences for nearly 12 million patients and hundreds of hospitals, health systems, and physician groups across the US.
NAPERVILLE, Ill., Oct. 15, 2025 /PRNewswire-PRWeb/ -- Impact Advisors, a leading healthcare management consulting firm, announces the release of its analysis of the "One Big Beautiful Bill Act of 2025" (OBBBA) federal budget legislation that passed in July with potentially extreme consequences for nearly 12 million patients and hundreds of hospitals, health systems, and physician groups across the US.
These projected health insurance coverage impacts are at the center of the current political showdown in Washington, D.C., over the federal budget, resulting in a shutdown of the federal government, which began on Oct. 1.
The analysis finds that few of the cuts directly target hospitals, health systems, and medical groups. However, because an estimated $1.14 trillion will come from tightening restrictions on Medicaid programs and Affordable Care Act (ACA) health plans, the economic effects of the OBBBA will run directly downstream to all providers, as an estimated 7.5 million people will lose Medicaid coverage and 11.8 million Americans will join the ranks of the uninsured.
"The OBBBA has been ringing alarm bells with our clients, and our research demonstrates why," said John Klare, Managing Partner, Impact Advisors. "These are big reductions in health care coverage, and providers have always borne the economic brunt of caring for the uninsured. Operating margins are already razor-thin at most hospitals in the country, especially for those with higher Medicaid and ACA patient populations."
As a consequence of the legislation, 300 hospitals are expected to close. Widespread media coverage of this estimate helps explain why only 35% of Americans view the legislation favorably.
"Our analysis of the legislation shows that it's not all bad news for providers," Klare continued. "It increases physician Medicare payments by 2.5% for one year. For hospitals, it also softens the blow from the Medicaid cuts, reducing the provider tax from 6.0% to 3.5% of net patient revenue over several years."
"Hospitals with large exposures to patient populations covered by Medicaid and ACA health plans need to take a hard look at the mixed effects of the legislation," Klare added. "They are likely to see a spike in uncompensated care, and a reduction in revenue and operating margins to match. It is indeed a 'big' bill, with many countervailing economic forces. The overall impact on every health care provider will be as unique as they are as organizations."
Read the full study here. For more information, visit impact-advisors.com.
ABOUT IMPACT ADVISORS
Impact Advisors is a healthcare management consulting firm with a long history of award-winning and innovative healthcare leadership, technology expertise, and sustained success. It currently works with hundreds of hospitals, health systems, and physician groups around the US. In 2019, Impact Advisors entered a strategic partnership with Chicago Pacific Founders (CPF), a certified WBE investment firm exclusively focused on healthcare services and caring for aging populations. Impact Advisors' best-in-class workplace culture has earned recognition from Modern Healthcare's Best Places to Work in Healthcare, Inc. magazine's Best Workplaces, and Forbes' Best Management Consulting Firms.
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SOURCE Impact Advisors
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