Since 2010, more than 90 rural hospitals have closed nationwide. While closure rates tend to be higher in states that have failed to expand Medicaid, a broader challenge facing these hospitals is the low margins that Medicaid payments provide.
Though many urban hospitals are doing well financially, the nation’s rural hospitals are not—to the peril of rural people and places.
The nation’s healthcare insurance battle leads to significant closure of rural hospitals. The Hospitality House of Tulsa says that the number of families it serves has more than doubled in the past year, as Oklahoma’s rural hospital system faces a crisis of its own.
Large nonprofit hospitals are adopting the corporate tactic of courting investors in hope of more financing at better rates, leading to investor demands for more transparency.
Georgia’s legislature moves to boost philanthropic support for rural healthcare in an effort to preserve access to services.
As the rural healthcare system slowly erodes, the aftermath leaves permanent gaps for local services in the small communities left behind.
Last week, a report published by the Journal for Health Affairs challenged the assertion that patient health is significantly compromised when hospitals close.
Hospitals in rural communities can be important economic anchors, but unless they get the economic boost that comes from expanded Medicaid, they could become uncompetitive and financially troubled.
