Between 2023 and 2024,126 hospitals across the U.S. shut down their inpatient psychiatric units. And that was before the effects of last year’s Congressional Budget Bill, HR-1, (see 2025 Federal Budget Reconciliation Bill and Congressional Budget Office Supplemental Cost Estimate) have taken effect. And the effects of the bill are likely to increase the financial pressure on those inpatient services, according to a new analysis, Medicaid Cuts Could Add Pressure To Already-Stressed Psychiatric Units.

The analysis points out Medicaid “is the financial foundation” of inpatient psychiatric care. But that foundation is shaky. Inpatient psychiatric units have average negative operating income of about 37% for Medicaid patients. This compares to a 13% negative margin for oncology inpatient…