Recent legislative changes have created ripples in Iowa’s healthcare landscape, with a significant reduction in medical services across the state. This shift follows the implementation of the One Big Beautiful Bill Act (OBBB), a legislative measure that aimed to slash Medicaid funding by $1 trillion by 2034, a move supported by Iowa Representative Zach Nunn.
Despite his assurance last year that Medicaid cuts would not lead to hospital closures, seven healthcare facilities in Iowa have experienced shutdowns, layoffs, or service reductions. Nunn had previously stated to WHO13 News, “I think the myth here is that rural hospitals are going to close down. That’s not the case.” Yet, the situation on the ground tells a different story.
One of the most affected organizations is MercyOne, a Catholic nonprofit operating several medical facilities in Iowa. It recently closed its clinics in Ottumwa and Traer, while downsizing staff in Des Moines and Mason City. According to MercyOne, the Medicaid cuts have been a significant factor in these reductions, leaving patients in Ottumwa, part of Nunn’s district, traveling up to an hour for medical care.
The financial strain on hospitals is evident. MercyOne highlighted the challenges in a statement: “It is not possible to simply absorb such a significant financial impact without making thoughtful, forward-thinking changes.”
Other facilities have also felt the impact. The Pella Regional Medical Clinic, located in Ottumwa, has scaled back its family and general practitioner services, and the Southeast Iowa Regional Medical Center in West Burlington has ceased its birthing services.
Despite the closures and service cutbacks, Nunn remains firm in his support of the OBBB, even financing a series of television advertisements promoting the bill in August 2025. As he campaigns for a third term, Nunn is considered one of the most vulnerable Republican incumbents seeking reelection, with the healthcare debate taking center stage in his district.
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