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flag Baystate Health stabilized its budget after cuts but faces a $146.7M annual shortfall by 2026 due to federal healthcare funding changes.

flag Baystate Health, the region’s largest healthcare provider, stabilized its budget after significant cost-cutting, including nearly 300 staff reductions, and ended a fiscal year in the black for the first time in years, reinvesting over $180 million into facilities. flag However, the system faces a projected $146.7 million annual shortfall starting in 2026 due to federal legislation that would cut Medicaid funding, eliminate 340B drug savings, and reduce ACA tax credits, threatening financial stability and access to care. flag Leaders warn the changes could increase premiums, expand the uninsured population, and strain the healthcare ecosystem, with Rep. Richard Neal urging a two-year extension of ACA tax credits to prevent widespread harm ahead of the 2026 midterms.

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