Fears over potential Medicaid cuts pose concern for Yuma hospital

Onvida Health in Yuma says almost half of their patients rely on Medicaid, and now the hospital is preparing for federal cuts to the program.
Published: May 15, 2025 at 6:29 PM MST

YUMA (AZFamily) — Health professionals are sounding the alarm, warning of the serious impact cuts in Medicaid could bring to rural hospitals where resources are already spread thin.

Onvida Health in Yuma is the only hospital system in Yuma equipped to provide essential services to the rural community.

Nearly half of all hospital patients there rely on Medicaid to cover medical costs.

The hospital’s CEO, Robert Trenschel, said the proposed $800 billion in Medicaid cuts could force the hospital to make difficult decisions about where to reduce costs.

That’s because every patient is treated regardless of their ability to pay, which could leave the hospital with uncompensated care.

“Here in Yuma we have 85% governmental pay, so 85% of our patients are either Medicaid, Medicare, or some type of federal insurance policy,” said Trenschel.

Trenschel said that if the proposed cuts were to go through, the hospital would have to evaluate which services would be the first to be reduced or eliminated.

“We lose the most money in behavioral health, so do we close our behavioral health hospital? We lose money there, but we know it’s a need in the community,” he said.

The loss of services would affect the entire community, regardless of insurance coverage.

The hospital said even essential services provided in the NICU could be at risk.

Nationwide, about half of rural births are covered by Medicaid, but in Yuma, that number is sometimes higher, according to Registered Nurse Carol Smith.

She works in the NICU, where she sees firsthand the critical support mothers need during care.

“When you consider a unit like the Neonatal Intensive Care Unit, it’s an emergency service, that’s not something that some people can decide on and travel out of town for, so those are going to have massive impacts,” said Smith.

Service cuts would force patients to travel out of town to access the care they need.

Trenschel said most rural hospitals would struggle to remain sustainable under the proposed cuts.

“Hospitals operate on very thin margins, 2-3% at most. Rural hospitals will close, those will get hit the hardest because there is nowhere else for people to go. That’s what happens in rural areas, there’s one hospital where people typically go,” he said.

Trenschel recently traveled to Washington, D.C., to meet with congressional leaders and warn them about the impacts rural hospitals are facing.

“It can’t go away , it’s got to stay strong and stay strong into the future as well,” he said.

See a spelling or grammatical error in our story? Please click here to report it.

Do you have a photo or video of a breaking news story? Send it to us here with a brief description.