Tuesday, September 13, 2022

Hospital industry analysis: Problems that triggered 136 rural hospital closures in 2010-21 appear to be getting worse

"Low reimbursement, staffing shortages, low patient volumes, regulatory barriers, and Covid-19 disruptions all played a role in the shuttering of 136 rural hospitals between 2010 and 2021, including a record 19 closures in 2020," John Commins reports for HealthLeaders, citing a report from the American Hospital Association, And, the report says, "Those problems appear to be worsening as rural hospitals contend with rising costs for labor, drugs, supplies and equipment, threatening care access for rural Americans." Key takeaways from the report include:

  • 35 percent of all U.S. hospitals are rural. That includes critical-access hospitals, frontier hospitals, and sole community hospitals.
  • Rural hospitals are often their community's largest employer, and drive the local economy.
  • Rural hospitals support 1 in 12 rural jobs nationwide.
  • AHA wants Congress to extend subsidies under the Medicare-Dependent Hospital and Enhanced Low-volume Adjustment programs. Both programs are set to expire Sept. 30.

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