Proposed Medicaid Cuts Could Reshape Healthcare in the Midwest
Federal lawmakers are considering deep cuts to Medicaid funding, which could lead to billions in lost dollars for states like Missouri and Kansas. These changes would directly affect hospital staffing, patient services, and access to care—especially for older adults, low-income families, and rural communities. Here’s what healthcare leaders need to know now.
Why This Topic Matters to Healthcare Leaders in Kansas and Missouri
Healthcare providers across Missouri and Kansas are bracing for the impact of proposed Medicaid funding cuts. These reductions—outlined in recent federal budget plans—could result in billions in lost reimbursements and thousands of job losses over the next decade. Clinics, hospitals, and long-term care facilities may be forced to scale back services or reduce staff, directly affecting patient care and access.
At The AGA Group, a trusted medical, dental, and healthcare staffing agency in Kansas City, we’re closely monitoring how these shifts could disrupt healthcare staffing—and how leaders can stay ahead of the curve.
Understanding Medicaid’s Role in Healthcare Staffing
Medicaid is more than a safety net. In Missouri and Kansas, it’s a foundational source of funding that supports hospitals, behavioral health centers, long-term care facilities, and outpatient clinics. When Medicaid reimbursements decline, providers often face tough decisions:
- Reduce services or operating hours
- Delay hiring or eliminate open positions
- Reassign staff and increase workload
- Push back or pause new service initiatives
The result? Staffing strains, lower morale, and disruptions in patient care.
The Projected Impact in Missouri and Kansas
According to a Commonwealth Fund and George Washington University study, Medicaid cuts could result in:
- $2 billion in funding losses for Missouri, leading to an estimated 20,000 healthcare jobs lost
- $485 million in cuts for Kansas, with a projected 9,500 jobs lost by 2026
And as the Missouri Independent reports, these changes will disproportionately affect vulnerable populations, especially older adults relying on home- and community-based services.
“Healthcare employers using flexible staffing models report 25% faster fill rates and improved patient satisfaction.” — Internal Metrics, The AGA Group
What This Means for Workforce Planning
1. Increased Burnout and Turnover
Hiring freezes and layoffs often increase pressure on remaining staff, causing burnout, dissatisfaction, and even more turnover.
2. Reduced Access to Care
Rural hospitals and community-based clinics are especially vulnerable. Many rely on Medicaid to keep their doors open. Service reductions could mean patients delay or forgo care altogether.
3. Greater Need for Staffing Agility
Partnering with workforce providers like The AGA Group gives healthcare employers access to ready-to-work talent, from credentialed temp staff to direct-hire professionals. Flexible staffing keeps facilities nimble during uncertain times.
Strategic Moves Employers Should Make Now
- Audit your staffing mix — and assess high-risk service lines.
- Cross-train staff to ensure flexibility across departments.
- Partner with staffing firms for supplemental or interim support.
- Stay informed using Medicaid advocacy tools to monitor and respond to policy changes.
Why The AGA Group Is Your Strategic Partner
As a seasoned healthcare staffing agency in Kansas City, The AGA Group brings more than talent—we bring insight. We know the Medicaid landscape and how it affects operations, compliance, and continuity of care. Whether you need to plan long-term or act fast, we’ll help you build a workforce strategy that aligns with shifting healthcare demands.
About the Author
Greg Ikner is President of The AGA Group™, a medical, dental, and healthcare staffing agency in Kansas City. With over 40 years in healthcare, executive search, and life sciences, Greg brings deep insight into workforce trends, recruiting strategy, and how healthcare systems adapt in times of change. the President of The AGA Group™, a premier healthcare staffing agency in Kansas City. With over 45 years of experience in life sciences, healthcare recruiting, and executive search, Greg brings a deep understanding of workforce trends and operational challenges facing today’s healthcare leaders.
