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Nursing Homes Face Closure Due to Budget Cuts in South Carolina

Elderly residents and caregivers outside a nursing home discussing budget cuts.

News Summary

Eight nursing homes in South Carolina are at risk of closure following significant budget cuts impacting Medicaid funding. The new federal legislation is projected to decrease funding for over 579 nursing homes nationwide. With many residents relying on Medicaid, this poses a serious threat to healthcare quality and accessibility in the state, already ranked low in healthcare services. The rising aging population highlights the urgent need for stable and well-funded nursing care services as these closures could impact thousands of residents.

Charleston, SC – Nursing Homes Threaten Closure Amid Budget Cuts

Eight nursing homes in South Carolina are facing potential closure due to significant budget cuts instituted under the federal “One Big Beautiful Bill Act,” signed into law on July 4, 2025. These cuts primarily affect Medicaid funding, jeopardizing the future viability of healthcare facilities across the state, which is already ranked as the sixth-worst for health care in the nation.

The Congressional Budget Office released a report on August 11, estimating that 10% of the lowest-income households will see an annual loss of approximately $1,200 in Medicaid and Supplemental Nutrition Assistance Program benefits due to the new legislation. Conversely, the top 10% of earners in the country are expected to benefit by gaining around $13,600 yearly from tax reductions.

A detailed analysis from the Brown University School of Public Health found that 579 nursing homes nationwide, including the eight in South Carolina, are particularly vulnerable to closure as a consequence of these Medicaid cuts. The report highlights that over 60% of nursing home residents depend on Medicaid for their care, and these funding reductions are likely to result in decreased staffing and lower quality of care in affected facilities.

Healthcare Impact in South Carolina

The landscape of healthcare in South Carolina is precarious, with approximately 1.03 million residents currently enrolled in Medicaid. In 2028, the state will lose its ability to compensate hospitals and nursing homes for Medicaid patients at rates comparable to private insurance through the program known as state-directed payment. This change is projected to lead to an annual loss of about $2.4 billion for healthcare institutions state-wide.

Nursing Homes at Risk

The nursing homes identified as at risk of closure include:

  • PruittHealth – North Augusta (Aiken County)
  • PruittHealth – Aiken (Aiken County)
  • Bayview Manor/Resorts at Beaufort (Beaufort County)
  • PruittHealth – Moncks Corner (Berkeley County)
  • PruittHealth – Ridgeway (Fairfield County)
  • PruittHealth – Columbia (Richland County)
  • Mountain View Nursing Home (Spartanburg County)
  • Dr. Ronald E. McNair Nursing & Rehabilitation Center (Williamsburg County)

Of the 187 nursing homes assessed in South Carolina, 45 received the lowest one-star rating from the Centers for Medicare and Medicaid Services, with 13 facilities being cited for abuse. This underscores the challenges faced not only by those who operate these homes but also by the vulnerable populations they serve.

Aging Population and Increased Demand

Moreover, South Carolina’s demographic trends reveal a rising demand for nursing home services, as over 1 million residents, or approximately 19.4% of the population, are aged 65 or older as of 2023. This growing population highlights the increasing necessity for reliable and well-funded nursing care services in the state.

Conclusion

As these eight nursing homes stand on the brink of closure, the combined impact of Medicaid cuts and an aging population raises serious concerns about the future of nursing care in South Carolina. The implications of these changes could affect thousands of residents who rely on these critical healthcare services.

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Additional Resources

STAFF HERE SPARTANBURG
Author: STAFF HERE SPARTANBURG

The SPARTANBURG STAFF WRITER represents the experienced team at HERESpartanburg.com, your go-to source for actionable local news and information in Spartanburg, Spartanburg County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Spartanburg International Festival, Spartanburg ArtWalk, and motorsport events at Spartanburg Speedway. Our coverage extends to key organizations like the Spartanburg Area Chamber of Commerce and the Spartanburg Regional Healthcare System Foundation, plus leading businesses in manufacturing and textiles that power the local economy such as BMW Manufacturing and Milliken & Company. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.

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