Why More Than 30% of Rural Hospitals Are at Risk of Closure - MedCity News
MedCity News
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Summary
A new report from the Center for Healthcare Quality and Payment Reform reveals that over 700 rural hospitals in the U.S., which accounts for more than 30%, are at risk of closing due to financial instability, with more than half facing immediate danger. This financial distress primarily stems from inadequate reimbursement from private health plans, despite higher operational costs in rural areas. The report emphasizes that rural hospitals often rely heavily on Medicare as their most lucrative payer, whereas private insurers pay well below costs. It calls for increased payments from private insurers and standby capacity payments to ensure these hospitals can continue to operate and support rural communities.
