Monmouth Medical Center Southern Campus in Lakewood, formerly known as Kimball Hospital, has been identified as one of several hundred hospitals across the country that may experience severe reductions in service and possibly closure due to federal Medicaid cuts, a new report is warning.

The report, released by Public Citizen, a consumer advocacy group, describes what it calls a “big ugly threat” to hospitals that rely heavily on Medicaid reimbursements. It cites estimates that proposed federal spending reductions—totaling hundreds of billions of dollars over the next decade—could significantly reduce revenue for hospitals that serve disproportionate numbers of low-income and uninsured patients.

New Jersey is estimated to lose $3.6 billion in annual funding from the federal government for the health insurance program, which is used by 1.8 million lower-income residents.

Medicaid is funded by the state and federal governments, which in New Jersey is about $10 billion from the state budget and $14 billion from Washington.

Safety-net hospitals, which often operate on thin margins, are particularly vulnerable because Medicaid payments typically fall below the cost of care. The report warns that cuts could lead to service reductions, staffing challenges, or even hospital closures in some communities.

In Ocean County, Monmouth Medical Center Southern Campus plays a critical role as a regional provider of emergency and inpatient services, serving parts of both Ocean and Monmouth counties. The hospital, a roughly 350-bed facility in Lakewood, treats tens of thousands of patients annually and accepts Medicaid, Medicare, and charity care patients.

Advocates say facilities like the Southern Campus could face outsized impacts due to the demographics they serve. Lakewood and surrounding communities have seen rapid population growth and increased demand for hospital services, including among Medicaid recipients.

According to the report, reductions in federal Medicaid support would shift financial pressure onto states and providers, potentially forcing difficult decisions about which services to maintain. Public Citizen argues that such cuts could weaken access to care in already underserved areas.

The report urges federal lawmakers to reconsider proposed reductions, warning that diminished Medicaid funding could ripple through local health systems and limit access to essential care for vulnerable populations.