Federal cuts and policy changes have pushed more than 113,000 patients out of Medicaid and the Children’s Health Insurance Program in Virginia. The changes have cut reimbursements that sustain clinics in communities like Franklin, a city in the middle of Virginia's diabetes belt.


A rural diabetes clinic struggles to provide care


Photographs by Christopher Tyree

Story and design by Kunle Falayi

Virginia Center for Investigative Journalism at WHRO


THIS STORY WAS SUPPORTED BY THE PULITZER CENTER.

At 83, John Hoofnagle has been dealing with Type 1 diabetes for more than half his life. Hoofnagle is Stallings’ oldest patient, a fact he acknowledges with pride. He said he found Stallings when she was practising in Suffolk between 2017 and 2022 and has stuck with her ever since, driving nearly an hour for every consultation.

“I was impressed with her,” he said. “She is easy to talk to and it is not that much of a drive.”

Dr. Dana Stallings sat at a small desk in her consultation room, looking at charts and records on a computer when her next patient, John Hoofnagle, arrived with his wife of 50 years, Joann.

Once pleasantries were out of the way, Stallings looked at Hoofnagle’s blood sugar readings and quickly dipped her hand into a drawer and came out with a fistful of assorted crackers.

“Start munching," she said, in an effort to prevent the symptoms of low blood sugar like shakiness, dizziness, or weakness. “At this point, you have 3% low blood sugar. I’m not happy with that.”

Moments like this are the cadence of this day in early August.

Stallings, a doctor of nursing practice, opened Southside Diabetes in Franklin four years ago with a specific promise: people around this small Southside Virginia town would not have to travel hours for specialized diabetes care.

It’s personal for Stallings. Her father had Type 1 diabetes. She grew up watching him check his blood sugar, take insulin, and later suffer the consequences of a disease that can quietly damage the heart, kidneys, nerves, and eyes. As a nurse, she saw the need for comprehensive care in hospitals: patients admitted for strokes or surgeries who also needed finger sticks, insulin and long-term help they often did not receive after discharge.

She left her job as a nurse practitioner in Suffolk and came back to Franklin, where she had once worked at the city health department. The town is right in the middle of Virginia’s diabetes belt. Since 2022, Stallings said, Southside Diabetes has grown to nearly 2,600 patients and expanded services to primary care and mental health.

Now it has become a test of how much this one small practice can absorb as federal cuts to Medicaid and the Children’s Health Insurance Program leave many of her patients without coverage and the clinic without much of the reimbursement that sustains operations.

The Trump Administration’s H.R. 1, also known as One Big Beautiful Bill Act, has caused Virginia to see one of the steepest drops in Medicaid and CHIP enrollment nationwide. Adult and child enrollment in the Commonwealth fell by more than 6% between April 2025 and April 2026, according to figures reported to the Center for Medicaid and Medicare Services. Only 11 states have a higher rate..

At Southside Diabetes, the cuts have meant many diabetes patients are no longer showing up for care. Some show up for their appointments, but get denied coverage by their insurers.

For many residents, the clinic is no longer just a place where they can get diabetes care. Other nearby health care facilities are shutting down, and the burden has fallen on the clinic.

“We’re having to tighten the reins,” Stallings said. “Our reimbursement is down. We are not going to let patients go without care. So, we’re still providing care and paying staff, and that's even with the patients who are coming in the door.”

On a typical, busy morning in August, Stalling shuttled from her office to the examination room in a steady rhythm of rapid‑fire assessments, dosage tweaks, and practical coaching.

Many of her patients travel as long as an hour for their clinic visits, including families like the Hoofnagles, who live in Chesapeake. Every consultation has the same tone: a small admonition, a chiding for skipping meals or not eating well or concern over personal issues at home that she always seems to know about her patients.

“We’re having to tighten the reins,” Stallings said. “Our reimbursement is down. We are not going to let patients go without care. So, we’re still providing care and paying staff, and that's even with the patients who are coming in the door.”

Mary Harper, 68, has her vitals taken during her appointment to Southside Diabetes. The region where the clinic is located is known as the diabetes belt. Some data suggests that about 28 percent of Franklin City residents, where the clinic is located, were on medicaid prior to the cuts to the program under the Big Beautiful Bill.

18.3% of adults diagnosed with diabetes

Source: CDC PLACES

The clinic is also the only diabetes-specific health care provider in a town where one in five adults has been diagnosed with the disease, according to the latest figures from the CDC.

Stallings hugs Barbara Smith, 66, from Suffolk, who was overcome with emotion following her exam. Many of Stalling's patients travel great distances to see her because of her clinic's approach to treating more than the illness.

Last month, a report by Virginia’s Joint Commission on Health Care categorized seven hospitals facing a high risk of closure. Franklin's main hospital, Bon Secours Southampton Memorial Hospital, was listed as facing an “immediate risk of closure.” Rural hospitals with high percentages of Medicare and Medicaid patients face the greatest financial pressure.

Since Covid, two of the areas four pharmacies have closed, including Franklin Hometown Pharmacy. The locally owned pharmacy cited issues with insurance reimbursement rates as the key reason for closing.

"Insurance companies and Pharmacy Benefit Managers have significantly impacted the profitability of independent pharmacies by reinbursing us at rates often below cost," a notice on the window of the pharmacy said.

The life expectancy rate in Franklin City is 67 years, compared to the state average of 77. Braxton Cooper, 26, is on Medicaid. His mother died at 38. He's seen by Nurse Practitioner Benicia Alexander.

One in 10 Southside Diabetes’ patients is a Medicaid patient, and one in three depends on Medicare. Research by the Commonwealth Fund found that Medicaid typically accounts for between 4% and 10% of a standard private clinic's patient volume, while Medicare makes up around 20% to 25%. The rest are covered by private insurance.

Despite the impact of H.R. 1, the clinic continues to grow, Stallings said. “That need for health care did not decrease when Medicaid coverage was reduced,” she said. “If anything, the need continues to grow. What has changed is how, or whether they can pay for and access that care. HR1 has made accessing that care more difficult for some of the patients who need it.”

John Hoofnagle, 83, who traveled from Chesapeake for his appointment at Southside diabetes, is helped by nurse LaVonda Jordan, 40, on August 4, 2026.

Almost every minute on a weekday afternoon, another patient steps into Southside Diabetes from the long corridor of a strip mall just off Armory Drive, Franklin’s main commercial corridor and retail hub. The clinic shares the building with restaurants, shops and a fitness center.

Stallings shuttled between an exam room and her office, a small space lined with board certifications, nurse practitioner credentials and degrees, including a Ph.D. Behind her chair, one corner is given over to Elvis Presley memorabilia.

The steady flow of Franklin residents through Southside Diabetes reflects how deeply the disease has taken hold in the region.

“You can’t throw a stick without hitting someone that’s diabetic,” Stallings said.

Controlling the disease is more difficult given a shortage of grocery stores and healthy food options.

71% of residents of Franklin's largest census tract live more than 1 mile away from a supermarket
54% of residents in the other

USDA Food Access Research Atlas data show both of Franklin’s census tracts were classified as low-income and low-access.

According to the University of Wisconsin Population Health Institute's County Health Rankings & Roadmaps, more than a quarter Franklin City residents lack access to healthy foods nearby.

Half a mile away, across the road from Southside Diabetes is a Walmart and a Food Lion, the two places for Southampton County residents to buy fresh groceries. Otherwise, they depend on either a Wawa, McDonalds, a Domino Pizza or a peanut restaurant serving salads, wrap and chicken sandwiches. All of these are concentrated in a part of Amoury Road far from most of the residential areas of Franklin.

“We are not only in a health care desert,” Stalling said. “When patients lose nutrition assistance, they often turn to cheaper packaged foods, processed foods and fast food. It’s going to make pre-existing diabetes worse because they just don’t have access to healthy, nutritious foods.”

At the same time many Virginians were losing Medicaid enrollment, they were also losing food assistance due to federal cuts to the Supplemental Nutrition Assistance Program. Virginia’s SNAP participation declined by 14% between July 2025 and May 2026.

Deeper cuts from HR 1 to both SNAP and Medicaid are scheduled to hit after the midterm elections in November.

Stallings has a frank discussion with William Redmond, 24, of Suffolk about monitoring his Type 1 diabetes. He is currently under his stepdad's insurance.

Mary Harper, 68, of Suffolk, has her glucose levels measured during her appointment at Southside Diabetes on August 5th, 2026.

Stallings speaks with her patient Susan Allensworth,77, about healty eating during her appointment on August 4th, 2026.

That reach creates a paradox: demand is high, but the business model is fragile.

Sometimes, Stallings said, staff reduce charges or see patients without payment. “We’re not going to let them go without care,” she said.

The federal cuts have forced her to delay hiring new staff.

Medical assistants LaVonda Jordan, 40, left, and Samantha Lewis, 36, both lost their Medicaid benefits because their income was just above the allowable limits instituted by H.R. 1. Stalling said Southside Diabetes cannot afford to offer health care.

The health care need is visible even among the people who work inside the clinic.

LaVonda Jordan, 40, has worked in health care for nearly a decade. She said she had never struggled to pay for health insurance until this year. After losing a hospital job and joining Southside Diabetes, which does not offer employee health insurance, she went on Medicaid. Then, she said, she received a letter saying her coverage would end in April. Her three sons remained covered, but she did not.

“That would put me lacking everywhere else,” Jordan said. “It would just be paying the rent, the light bill and health insurance.”

The cheapest insurance plan she found was about $600 a month.

Patients call the clinic after insurance denies test strips, sensors, insulin or long-used medications, Lewis said. Many do not understand why a drug prescribed by their provider still requires another round of paperwork.

“They’re looking for us to be that backbone to speak for them,” she said.

Samantha Lewis, a 36-year-old medical assistant at Southside Diabetes, is also a Type 2 diabetic. She was diagnosed in 2011 and has been treated by Stallings for 15 years. After losing Medicaid, she said marketplace insurance cost nearly $500 a month. Sometimes she pays it when she needs medication, then falls behind.

“When I pay, that’s when I get my medications,” Lewis said.

For diabetes patients, missed appointments can become dangerous.

Stallings recalled a woman whose diabetes had been controlled before she lost insurance and stopped care. After more than a year away, she was hospitalized with dehydration and a dangerously high blood sugar level, Stallings said.

The woman cried in the exam room as she restarted treatment. “She said, ‘I almost died,’” Stallings said.

In Franklin, Stallings sees the clinic as both a medical practice and a bulwark against a larger collapse. The main hospital is financially distressed. Pharmacies have closed. Healthy food is scarce. Insurance denials and Medicaid losses are pushing patients out of routine care.

Some nights, the work keeps her awake.

“How can I help,” she asked, “if we’re not here?”

Despite the impacts facing health care providers today from federal policies, Stallings said she remains committed to treating her patients and community. She reacts after giving John Hoofnagle, 83, good news about his labs during his appointment on August 4th, 2026.

Reach Kunle Falayi at kunle.falayi@vcij.org, Christopher Tyree at chris.tyree@vcij.org

© Virginia Center for Investigative Journalism at WHRO.