The Hospital and Healthsystem Association of Pennsylvania (HAP) is raising alarms over the U.S. Senate’s passage of a budget reconciliation bill that includes proposed cuts to Medicaid.

In a statement released Tuesday, HAP President and CEO Nicole Stallings said the legislation could result in the loss of health coverage for many Pennsylvanians and create financial strain on hospitals, particularly in rural communities.

“More than half of Pennsylvania’s acute care hospitals are already operating at a loss,” Stallings said. “They cannot absorb a cut of this magnitude, and some will have no choice but to reduce services or close.”

Stallings emphasized that the cuts could affect not only health care access, but also employment and economic stability in affected regions.

She called on Pennsylvania’s congressional delegation to reject the proposed reductions in Medicaid funding as the bill moves forward.