Gov. Beshear Calls on Congressman Barr To Stand Up for Kentucky’s Rural Hospitals and Healthcare

Governor corrects misleading and inaccurate statements by Rep. Barr in Aug. 25 letter

FRANKFORT, Ky. (Sept. 1, 2026) - Today, Gov. Andy Beshear sent a letter to U.S. Rep. Andy Barr correcting misleading and inaccurate statements regarding the impact of Medicaid cuts on Kentucky's rural hospitals and the use of funding from the Rural Health Transformation Program. The Governor called on the Congressman to take steps to undo the damage he caused by supporting President Donald Trump's "Big, Ugly Bill," which will result in the commonwealth losing at least $21 billion in Medicaid funding, strip 250,000 Kentuckians of their health insurance and endanger the livelihoods of 20,000 healthcare workers.

The Governor issued the letter in response to one received from the Congressman, which questioned the data provided by the Kentucky Hospital Association related to Medicaid cuts and their impact, and inaccurately stated how funding from the Rural Health Transformation Program can be used by the state.

"These Medicaid cuts have put 35 Kentucky rural hospitals at risk of closing. These aren't my words; they come from the Kentucky Hospital Association, which repeatedly warned that our state faces the highest number of rural hospitals at risk of shutting down due to this cruel and careless legislation that Congressman Barr supported," said Gov. Beshear. "And while my administration secured $212 million this year through the Rural Health Transformation Program, guidelines from the federal government prevent us from directing these funds to protect rural hospitals. The Congressman should check his facts before misleading Kentuckians."

'Big, Ugly Bill' and Medicaid Cuts
As early as June 2025, the Kentucky Hospital Association, Gov. Beshear and other healthcare leaders began to sound the alarm on the "Big, Ugly Bill" and the negative impacts it would have on rural hospitals throughout the commonwealth and the patients they serve. In July 2025, the Kentucky Hospital Association and leaders from state hospitals and health systems sent a letter to the U.S. House Representatives citing that one third of citizens in the commonwealth rely on Medicaid, which also covers 50% of Kentucky's children. The letter stated clearly that 35 hospitals were likely to close, that people would lose their jobs and that local economies would suffer.

A number of credible organizations have shared the data highlighted by Gov. Beshear and the Kentucky Hospital Association, including the Kentucky Center for Economic Policy, a number of media outlets and more.

Rural Health Transformation Plan
In December 2025, the Governor announced that Kentucky's Rural Health Transformation Plan (RHTP) was accepted in full by the Trump administration, securing $212.9 million in funding to lessen the impacts of recent federal cuts and help support healthcare in Kentucky's rural communities.

The federal plan was announced by Robert F. Kennedy Jr., the president's secretary for Health and Human Services, and Dr. Mehmet Oz, the administrator for the Centers for Medicare & Medicaid Services, who clearly stated in a published op-ed that these dollars could not be used to fund struggling hospitals. They put it in even starker terms: "Throwing money at struggling hospital operations is like a Band-Aid on a severed artery, leaving a broken system in place."

Gov. Beshear has acknowledged that the more than $212 million does not come close to covering the gap caused by the federal cuts to Medicaid; however, it can be used to support rural health in areas that will have greater need in the years to come.

Kentucky's plan was developed by the Beshear administration in partnership with health partners from across the state and will use the $212.9 million over five years to help address the unique challenges rural Kentuckians face, including high rates of chronic conditions, maternity care deserts and gaps in coverage for oral care, emergency services and behavioral health.

"Healthcare is a basic human right, and it was a priority for me and my administration to submit this application and fight for funding to support our rural health communities - especially following the passage of devastating Medicaid cuts," said Gov. Beshear. "I am proud our community-driven plan was accepted in full."

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