Rural Health News is a weekly segment of Rural Health Today, a podcast by Hillsdale Hospital.
Rural Health News 2-2-2026
The American Red Cross recently announced a severe national blood shortage, with supply falling 25% over the past few weeks. One of Hillsdale Hospital’s emergency physicians was invited to speak on this issue in a local press briefing, highlighting the effect of blood shortages on rural hospitals. The Red Cross cites severe winter weather and the nationwide flu outbreak as the primary causes of the supply shortage. Help us spread awareness of this issue and sign up to donate blood at redcrossblood.org. Blood supplies are vital for trauma patients, those experiencing chronic illness, and many medical emergencies where transfusions are required to
Damage Report
In 2026, we expect to see the following changes to the healthcare industry:
- Medicaid policies will go through their first reforms from the H.R.1 bill this year. While the majority of changes to eligibility requirements will not occur until 2027, states will need to make individual decisions about major policy items in preparation for it, such as eligibility systems and processes, data sharing, enrollee outreach and education, and staffing infrastructure.
- This year, the federal requirements for provider taxes will go into effect. The maximum allowable tax won’t start decreasing until 2027, but states are already unallowed to increase existing taxes or establish new provider taxes. Many states rely on provider taxes to help sustain Medicaid funding, so the effect of its reduction will start to become evident in 2026.
- We expect to see a sharp decrease in health insurance enrollment this year. As America adjusts to the reality of Marketplace plans without enhanced premium tax credits (EPTCs), we’re already seeing enrollees either drop their plans or withhold premium payments until the plan expires. This will prevent thousands of people from accessing essential preventative care and put rural populations at risk, especially as health services struggle to remain open through the upcoming reimbursement reductions. While it’s not too late for these subsidies to be saved, the most recent healthcare package passed by the House did not include the extension of EPTCs.
Success Story
The Centers for Medicaid and Medicare recently awarded 400 new residency positions — funded by Medicare — to more than 130 hospitals. The goal of this program is to expand physician training and target high-need areas like rural communities with improved training capacity. Rural hospitals have a significant workforce shortage and face unique barriers in recruiting talent long-term, so programs like this make an impact on the future of rural health.
Sources
Mackenzie Bean, “Hospitals awarded new Medicare-funded residency slots: A breakdown,” January 28, 2026, https://www.beckershospitalreview.com/quality/hospital-physician-relationships/hospitals-awarded-new-medicare-funded-residency-slots-a-breakdown/, Becker’s Hospital Review.
Robin Rudowitz et al., “Medicaid: What to Watch in 2026,” January 23, 2026, https://www.kff.org/medicaid/medicaid-what-to-watch-in-2026/, KFF Health News.
American Red Cross, “Red Cross Declares Severe Shortage after Blood Supply Falls 35% in Past Month,” January 20, 2026, https://www.redcross.org/about-us/news-and-events/press-release/2026/red-cross-declares-shortage-after-blood-supply-falls-35-.html.
