As health insurance costs rise and federal funds dry up, many teaching hospitals may be facing tough cuts to their budgets in the coming months.

Many New York state teaching hospitals are bracing for possible cuts that could take $1 billion in funding away annually, according to The New York Times. Coming directly from Washington, D.C., the cuts would limit Medicare grants that are currently used to train physicians and provide specialty centers such as trauma units and cutting-edge equipment.

Many in the healthcare industry are concerned that the budget shortfalls affecting teaching hospitals nationwide will cause irreparable damage to the healthcare industry. According to the Association of American Medical Colleges, the cuts could impact more than just quality of care and the availability of well-trained doctors.

Jobs, research advances and business developments are all standing in harm's way. These factors could cause problems on several, the source reports. As a result, the issue needs to be dealt with on a broader level, with members of every community, not just the healthcare industry, involving themselves in the discussion.

"Cuts in Medicare support for teaching hospitals would have serious economic consequences at the local, state, and national levels," Paul Umbach of the AAMC explained.