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Evergreen Health CEO warns Medicaid cuts will strain regional care, cites local investments
Summary
Evergreen Health CEO Ettore Palazzo told the Woodinville City Council that federal Medicaid reductions phased in from 2026 could force service consolidations, longer ER waits and financial strain across Washington hospitals, while highlighting local investments funded by a small hospital levy.
Dr. Ettore Palazzo, chief executive officer of King County Public Hospital District No. 2 (Evergreen Health), briefed the Woodinville City Council on July 8 about financial pressures on hospitals and what a recent federal budget change could mean locally. Palazzo said Evergreen Health has turned a corner financially after pandemic-era losses but warned that projected Medicaid funding reductions will force difficult decisions across the state and region.
Palazzo told the council that estimates project multi‑billion dollar reductions in federal Medicaid support over the next decade and that “this is a disaster for Washington…
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