Rural Hospitals Face Crisis as Financial Losses Threaten Access to Care
HealthLeaders
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Contributed by: Kate Gamble
Summary
A recent analysis by Chartis has identified a significant crisis affecting rural hospitals in the U.S., with nearly 50% operating at a financial loss and over 432 facilities at risk of closure. The report highlights declining health outcomes in rural areas and the proliferation of "care deserts" as contributing factors. While there has been a slight improvement in the percentage of rural hospitals in deficit compared to the previous year, financial stability remains precarious, with a national median operating margin of just 1%. The study notes a stark contrast between states that expanded Medicaid under the Affordable Care Act and those that did not, affecting the financial health of rural hospitals. Since 2010, 182 rural hospitals have closed or shifted to non-inpatient care models, and many remaining facilities have reduced services.
