Berkshire Medical Center and Fairview Hospital will each receive state funding to help offset anticipated federal cuts.
Specifically, the hospitals will receive a part of a $17 million allocation. The state rolled out than $122 million in funding last month to acute care hospitals. The specific amount each hospital will receive has not been released yet and is being calculated based on how many patients they have.
The allocation was part of a larger $234 million spending bill passed by the Legislature that also provides funding for the Massachusetts Health Safety Net Fund, which pays acute care hospitals and community health centers for essential health care services for qualified uninsured and underinsured residents.
The cuts stem from the One Big Beautiful Bill Act, which will see millions lose Medicaid coverage without Congressional action. The bill also allows tax credits to expire at the end of this year that have made health insurance more affordable for millions since the pandemic, which are at the heart of the current federal shutdown.
Massachusetts Taxpayers Foundation President Doug Howgate said the federal spending bill will lead to reduced enrollment in insurance. The state allocation hopes to insulate hospitals from that.
“What I really, really appreciate with the commonwealth is that we’re very, very proactive,” said state Rep. Leigh Davis, D-Great Barrington. “We can see what’s happening. We can read the tea leaves. This is basically a stopgap. We need longer-term planning.”
According to a recent Berkshire Benchmarks survey, 1 in 4 participants reported that they do not have the finances or health insurance necessary for the care they need, with people of color disproportionately affected.
As federal budget cuts to Medicaid and premium supports for people insured under the Affordable Care Act take effect, Davis said the state will have to fill the gaps.
“These shortfalls will only grow as federal cutbacks are implemented and more people fall off MassHealth and other government-funded plans. BHS and the state’s other hospitals are working with the Massachusetts Health and Hospital Association on longer-term solutions for the upcoming fiscal year and beyond,” said Berkshire Health Systems spokesperson Michael Leary in a statement.
This state relief funding is meant to act as a lifeline for local hospitals, and Davis said hospitals have been advocating for financial help. The funding will help hospitals and community health programs, especially smaller ones, stay afloat as they already deal with issues like borrowing costs.
“The hospitals can know that they have a little bit of cushion and that the Legislature is there for the long ride. We’re there and we’re listening to them and we’re responsive. This is just one step in a longer process of helping our health care system,” said Davis.
“The state is No. 1 in health care and we have a real, real commitment to ensuring that the residents are provided for. So you’re going to see more of this,” said Davis, adding that the funding should reach the hospitals by the end of the year.