ICYMI: MercyOne Lays Off 67 Employees in Des Moines as Trinity Health Announces $1.5 Billion in Federal Revenue Loss
Reduced access to Medicaid and Medicare and reduction in federal government funding are to blame
DES MOINES – Sixty-seven employees will be laid off from MercyOne in Des Moines on March 17 as MercyOne’s parent company tries to remain financially sustainable after all of Iowa’s federal representatives voted to kick 106,700 Iowans off of health care and threaten rural hospitals.
In an announcement about the planned cuts, the company pointed specifically to Medicaid and Medicare cuts and reductions in insurance coverage.
“The recent and future government funding policy changes are projected to reduce Trinity Health’s [MercyOne’s parent company] annual revenue by $1.5 billion. Additionally, more reductions in coverage, payment and access to Medicaid and Medicare are being considered by the federal government. It is not possible to simply absorb such a significant financial impact without making thoughtful, forward-thinking changes,” a spokesperson for MercyOne told WHO13.
Earlier this month, MercyOne announced the closure of a MercyOne clinic in Ottumwa, which will displace about 40 workers.
Iowa Republicans Randy Feenstra, Ashley Hinson, Mariannette Miller-Meeks and Zach Nunn voted for the largest Medicaid and Medicare cuts in history in 2025. The group also allowed Affordable Care Act premium tax credits to expire at the end of 2025, effectively doubling the amount Iowans will have to pay for their insurance and kicking more than 13,500 Iowans off their insurance plans. New data show 123,304 Iowans are enrolled in the ACA marketplace in 2026, versus the more than 136,800 Iowans who were enrolled in 2025.
Zach Nunn was caught on camera this week telling a group of Republicans at the Westside Conservative Club: “I want the ACA gone as much as any of you.”
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