FOR IMMEDIATE RELEASE
JULY 24, 2025
ALTURAS, CALIF. – Modoc Medical Center has had concerned community members ask
about the financial impact of the H.R.1 “One Big Beautiful Bill (OBBB)” that was signed into
law by President Trump on July 4th. Some of these concerns stem from a letter by several
U.S. Senators addressed to President Trump and key Congressional leaders prior to the
vote on the OBBB. The letter expressed concerns about rural facilities remaining financially
viable with the proposed health care cuts included in the bill and cited a University of North
Carolina report that analyzed the financial health of rural hospitals nationwide using public
data. This report listed all rural hospitals in the top tenth percentile of facilities based on
the volume of Medi-Cal (Medicaid) patients they serve.
Since Modoc Medical Center (MMC) provides services to a large number of Medi-Cal
patients, the letter identified MMC as one of the “at-risk” rural hospitals in California. It is
important to note that MMC was not listed as a result of any financial indicator that the
organization is in any current financial distress.
Nationally, the OBBB will reduce Medicaid spending by $1 trillion over the next decade.
Provisions of the OBBB will be implemented over the course of the next several years, with
changes of varying impact taking effect over multiple fiscal years. These changes are
expected to have a substantial impact on MMC, where more than 50% of the organization’s
net patient revenue comes from the Medi-Cal program. The enactment of the OBBB
represents the largest Medicaid cut in U.S. history through sweeping structural changes to
eligibility, enrollment, and financing. Given the scale of these cuts and the timing of
implementation over the next few years, MMC leadership is diligently assessing the
impacts of OBBB provisions on an individual basis as federal and state guidance becomes
available. “We are committed to understanding this bill in its entirety to better project the
short and long-term financial ramifications on MMC,” said MMC CEO Kevin Kramer. “While
the financial impact of the federal budget cuts is significant, I am confident that we will be
able to find a way to continue to provide high quality health care services in our community
for many more years to come.”
Over the past decade, Modoc Medical Center has been fortunate to maintain a positive
operating margin. Unlike many rural hospitals, MMC benefits from stable and reliable
revenue sources, including a locally collected district tax. While the federal budget cuts
represent a significant challenge to all healthcare providers, MMC leadership remains
hopeful that the cuts can be navigated in a way that will allow the organization to remain
financially viable and continue to grow.