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Federal, state Medicaid cuts drive low-income health clinic merger

State and federal Medicaid cuts are forcing two local nonprofit health clinics for low-income patients to merge. The merger aims to improve access to care in Elkhart.

Valparaiso-based HealthLinc, which serves about 57,000 patients across 14 clinics in Michiana, this week announced plans to merge with Elkhart-based Heart City Health, serving about 11,000 patients with four clinics.

The Trump Administration’s Medicaid cuts have made it harder for clinics to keep staff. HealthLinc CEO Melissa Mitchell says the merger will lead to more clinicians staffing Elkhart’s clinics.

“Medicaid cuts are killing us, and they’re making it so even health centers that were completely financially stable two years ago are taking cuts all over the place. And in Indiana alone, I’ve heard just recently of a handful of health centers that are laying of 50 to 100 people, closing sites.”

The Trump administration also has cut funding for clinics to make medicine more affordable. And Indiana Gov. Mike Braun’s work requirements for Medicaid recipients takes effect in October.

“Those types of challenges make it so that we are on incredibly thin margins and so we need to find a way to be the most responsible and resourceful when it comes to any of the funding that we do get.”

Parrott, a longtime public radio fan, came to WVPE in 2023 with over 25 years of journalism experience at newspapers in Indiana and Michigan, including 13 years at The South Bend Tribune. In his free time he enjoys pickleball, golf and spoiling his dog Bailey, who is a great girl.