Giving Compass' Take:
- A collaborative study from the North Carolina Rural Health Research Program and the Cecil G. Sheps Center for Health Services Research at the University of North Carolina Chapel Hill found three primary financial reasons for rural hospital closures between 2017 and 2020.
- How can donor investment in rural public health focus on hospitals? What are the overlaying factors for rural infrastructure that force hospital closures?
- Learn how to improve investments in rural health.
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Rural hospitals are often the lifeblood of their communities, in terms of jobs provided and lives saved, but hundreds have shuttered in recent decades and the pandemic has accelerated that trend. A recently published study found three common financial factors that most often heralded the 56 rural hospital closures between 2017 and 2020.
"In the year before their closure, most of the now-closed rural hospitals nationwide had low cash on hand, negative operating margins, and negative total margins, compared to rural hospitals that stayed open," Clarissa Donnelly-DeRoven reports for North Carolina Health News. Those last two factors means they lost money. Though buyouts from larger health systems and subsequent consolidation might be responsible for a few closures, the researchers found that the vast majority closed for financial reasons. Though this study didn't examine the role of Medicaid expansion in keeping rural hospitals open, a 2018 study out of Colorado found that it makes a big difference in keeping rural hospitals open.
Read the full article about rural hospital closures by Heather Chapman at The Rural Blog.