Eastern Plumas Health Care Unaffected by H.R. 1 Medicaid Cuts

SIERRA, PLUMAS COUNTIES — Eastern Plumas Health Care (EPHC) will not be negatively impacted by the major Medicaid spending cuts in H.R. 1, thanks to years of proactive strategic planning.

In a recent update, CEO Doug McCoy announced that while many rural hospitals are at risk due to the legislation, EPHC is in a strong financial position and has fully mitigated all anticipated reductions beginning in fiscal year 2028.

H.R. 1, the major budget bill passed in 2025, includes roughly $1 trillion in Medicaid cuts over the coming decade. The legislation introduces stricter work requirements, more frequent eligibility checks, and changes to federal funding mechanisms. These provisions have sparked widespread concern that many rural providers could be forced to cut services or even close.

EPHC, however, has taken a different path. “We have spent a lot of time over the last several years making sure that we’re able to continue to provide services and grow services as we’re going forward,” McCoy said. Through careful planning, the organization says it has eliminated the financial risk posed by the cuts without reducing staff or current services.

Instead of scaling back, EPHC continues to expand. Recent initiatives include adding Senior Life Solutions, enhancing its rehabilitation program, participating in CalAIM Community Care, and hiring 7 new providers in 2025.

McCoy credited several key steps — including renegotiating contracts for better pricing, leveraging new technology, and reinstating MRI services — for strengthening the organization’s position. “We have eliminated the risk for cut reductions, and we will be stronger than ever,” he stated.

The CEO’s full video message is available on the EPHC website at ephc.org. Community members with questions may contact Doug McCoy at doug.mccoy@ephc.org.