Supporting Governor DeWine’s Budget: A Path to a Healthier, Stronger Ohio

Governor Mike DeWine’s proposed FY 2026-2027 state budget, outlined in House Bill 96, presents a fiscally responsible plan that strengthens our economy and safeguards our communities.

Ohio’s hospitals are facing a severe financial crisis. In 2024, more than half of Ohio’s hospitals lost money, including 72% of our rural hospitals, and this follows years of financial distress. Without the relief provided by HB 96, many hospitals could face closure, leaving communities without critical healthcare services.

Hospitals are the cornerstone of our healthcare system, providing 24/7 emergency care, responding to disasters, and serving as safety nets for the uninsured. Additionally, Ohio hospitals are major economic drivers, oftentimes the largest employers in their cities or regions. The proposed budget is essential to preserving this vital role.

Medicaid: A Lifeline for Millions of Ohioans
Approximately three million Ohioans — 25% of the state’s population — rely on Medicaid, including 1.3 million children. Federal provider tax programs, used in 49 states, allow Ohio to leverage federal matching funds to finance Medicaid without drawing on the General Revenue Fund (GRF). The hospital franchise fee alone is projected to generate $1.75 billion in non-GRF funding, supporting numerous state priorities.

This funding mechanism is a win-win for the state, taxpayers, and hospitals. By supporting Governor DeWine’s proposal, we can preserve essential healthcare services and maintain fiscal responsibility without burdening state funds.

Stabilizing Rural Healthcare
Rural hospitals are at a particularly high risk, with up to 20% facing imminent closure, according to a recent study by Chartis. Governor DeWine’s budget addresses this threat by increasing Medicaid reimbursements for rural and critical access hospitals, funded by the hospital franchise fee—not GRF dollars. These provisions are crucial for the survival of rural hospitals, which serve as lifelines for communities with limited access to care.

Navigating 340B Pharmacy Reimbursement Cuts
One challenging aspect of the proposed budget is the $476 million cut to 340B pharmacy reimbursements for safety-net hospitals over the biennium. While these cuts in isolation will be detrimental to those who rely on this benefit, it is understandable and essential to take a pragmatic view in the current fiscal environment. The overall benefits of the budget — including financial stability for hospitals and increased Medicaid reimbursements — outweigh the drawbacks of the 340B cuts.

Investing in Ohio’s Healthcare Workforce
Governor DeWine’s budget also addresses the healthcare workforce crisis by providing financial stability to hospitals, enabling them to invest in training, recruitment, and retention. Supporting this budget means supporting the people who care for our communities every day. By passing HB 96, Ohio can expand the pipeline for doctors, nurses, and healthcare professionals, ensuring that our communities continue to receive high-quality care.

A Win for Ohio’s Future
Governor DeWine’s proposed budget is a win for Ohio’s taxpayers, a win for our economy, and a win for the core principles we all hold dear — personal responsibility, public safety, and fiscal prudence. By stabilizing hospital finances, protecting Medicaid, and supporting rural healthcare, this budget lays the foundation for a healthier, stronger Ohio.

We urge the Ohio House to pass HB 96 and make a vital investment in Ohio’s future — ensuring that every community has access to the healthcare services they need.

Cliff A. Megerian, MD, FACS, is Chief Executive Officer of University Hospitals