Thursday, April 09, 2020

1/4 of rural hospitals are at risk of closing: state-level data

The number and percentage of high-financial-risk rural hospitals considered essential to their communities.
Guidehouse map; click on the image to view a larger version.
A quarter of the nation's rural hospitals are at a high risk of closure, according to a newly published data analysis by Guidehouse (formerly Navigant Consulting). The study notes that the data was collected earlier in the year, before the coronavirus pandemic hit, and that rural hospitals could be even worse off now. Among its findings:
  • 354 rural hospitals nationwide are at risk, in 40 states.
  • Those hospitals discharge more than 222,350 patients per year, employ more than 51,800 workers, and generate $8.3 billion in total patient revenue.
  • Of the at-risk hospitals, 81 percent, or 287, are considered "highly essential" to the health and economic well-being of their communities.
  • In 16 states, all of the at-risk hospitals are considered highly essential.
  • Tennessee has the highest percentage of rural hospitals at risk of closing, with 68% of its 19 hospitals at risk.
  • Oklahoma has the highest number of rural hospitals at risk of closing, with 28 of its hospitals, or 60%, at risk.
  • Mississippi has the highest number of highly essential hospitals at risk of closing, since all 25 of its highly essential rural hospitals are at risk.
  • Eight rural hospitals have already closed in 2020.
  • One major factor hurting rural hospitals' bottom lines: many patients opt to go to an urban hospital, often for more complex or specialized care. 
  • More than 75% of rural patients have opted to bypass their local hospital, compared to 35% of suburban patients and 23% of urban patients.
  • 68% of rural patients choose to go elsewhere for treatment even though their case was minor and the local hospital could have handled the treatment.
  • Of the rural patients with the most serious medical ailments, only 5% went to their local hospital for treatment.

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