Alameda Health System Nursing Homes Earn National Recognition Amid Medicaid Funding Crisis

Alameda Health System has achieved national recognition with all four of its skilled nursing facilities named to Newsweek's America's Best Nursing Homes 2026 list. The designation comes at a critical time as the public safety-net health system faces substantial federal funding reductions that could jeopardize these essential community services.

The recognized facilities include Fairmont Rehabilitation and Wellness in San Leandro, along with Alameda Hospital Skilled Nursing Facilities in Alameda, which encompasses Park Bridge Rehabilitation and Wellness, Alameda Hospital Sub-Acute Unit, and South Shore Rehabilitation and Wellness. These facilities provide long-term care and temporary residence for patients requiring medically necessary rehabilitation treatment.

Richard Espinoza, chief administrative officer of post-acute services at AHS, emphasized the significance of this achievement for a public safety-net system. "We believe that health care is a human right that everyone should have access to, regardless of their ability to pay for services. This recognition affirms our belief that the public, safety-net health system can and does provide exceptional care on par with for profit institutions," Espinoza stated.

The recognition becomes particularly meaningful given the financial challenges facing safety-net healthcare providers. Medicaid serves as the primary payer for over 60% of nursing facility residents nationwide, making it essential for accessible long-term care. Recent congressional action has created substantial funding concerns, with Congress passing sweeping Medicaid cuts as part of H.R.1, known as The Big Bill, which was signed into law last July.

Financial projections indicate AHS will lose $100 million annually in federal funding by 2030 due to these cuts. This reduction poses a significant threat to the system's operations, as approximately 80% of AHS funding comes from Medicaid and state healthcare reimbursements, known in California as Medi-Cal. These dollars support not only skilled nursing facilities but also other critical healthcare services including trauma care, emergency services, hospital operations, and primary care.

James Jackson, CEO of AHS, expressed both pride in the recognition and concern about the funding situation. "The need for affordable, high-quality skilled nursing home care is enormous in Alameda County. I'm proud that AHS skilled nursing care providers are meeting the need with excellence and honored by Newsweek's recognition. However, it is also important to sound the alarm: Medicaid funding has been slashed and health care services like these that are critically important to the health and well-being of our community are at risk," Jackson warned.

The Newsweek recognition, developed in collaboration with Statista, evaluates nursing homes across four key criteria: performance indicators including staffing levels and quality measures, reputation scores from medical professionals, accreditations from organizations like TJC and CARF, and resident satisfaction reflected in Google rating scores. The complete America's Best Nursing Homes 2026 ranking can be viewed on Newsweek's website.

This juxtaposition of excellence in care delivery against the backdrop of financial uncertainty highlights the broader challenges facing safety-net healthcare systems nationwide. The recognition demonstrates that public health systems can deliver exceptional care comparable to private institutions, even as they face disproportionate funding challenges that threaten their ability to continue serving vulnerable populations.