Rural Hospitals Face Cybersecurity Risks Amid Medicaid Cuts, Senators Warn

Senators Ron Wyden and Mark Warner are urging the Trump administration to address growing cybersecurity vulnerabilities in rural hospitals as sweeping Medicaid cuts from a newly enacted GOP tax law strain healthcare budgets. In a letter to HHS and CMS officials, the senators noted that rural hospitals already operate on thin margins and lack cybersecurity personnel, making them easy targets for cyberattacks. The $1 trillion law, dubbed the “One Big Beautiful Bill,” slashes federal healthcare funding, potentially increasing the uninsured by 10 million and pushing over 330 rural hospitals to the brink. These financial pressures, the senators argue, make investments in cybersecurity unlikely, putting patient safety at risk. They questioned how HHS will allocate a $50 billion rural hospital fund and whether updates to HIPAA cybersecurity rules will proceed. Meanwhile, staffing cuts at HHS and reduced focus on digital protection could leave rural providers more exposed than ever.

22-07-2025