Texas hospitals could be forced to reduce services and cut staff if a dispute over federal Medicaid funding continues, according to the Texas Hospital Association. New Medicaid rules included in President Donald Trump’s “One Big Beautiful Bill” Act take effect Tuesday, as hospitals were al ready preparing for a 10% funding cut next year. “So if we don’t come to a reconciliation on these issues, it won’t even be a 10% cut. It will lose the whole program,” said John Hawkins with the Texas Hospital Association. Hawkins said the state, hospitals and federal government have negotiated for several months without reaching an agreement. He warned that if the standoff continues for another month, some North Texas hospitals could be forced to reduce services or furlough and lay off employees. “That’s what concerns us. It seems like this scrutiny is beyond what even what we’re trying to implement in the one big beautiful bill act,” Hawkins said. According to state documents posted online, the Trump administration is withholding hospital payments over several issues. Despite a Texas law barring noncitizen adults from receiving Medicaid services, the federal government is seeking more evidence that the restriction is being enforced. Other concerns involve how hospitals calculate spending on patients under the new requirements. Hawkins said hospitals can operate at a deficit temporarily, but not indefinitely. “You can run a deficit for some period of time, but not into perpetuity without making some tough decisions about the care that’s delivered,” Hawkins said. This story was originally reported for broadcast by NBC DFW. AI tools helped convert the story into a digital article, and an NBC DFW journalist edited it again before publication. ...read more read less