AHA releases report on rural hospital closures

Editor's Note

A new report was released by the American Hospital Association (AHA) highlighting numerous causes that resulted in 136 rural hospitals closing from 2010 to 2021, including 19 closures in 2020, AHA September 8 reports.

These closures can be attributed to longstanding pressures, including low reimbursement, staffing shortages, low patient volume and regulatory barriers, and financial challenges affiliated with the COVID-19 pandemic. Additionally, expenses for labor, drugs, supplies, and equipment have significantly increased, leading to difficulties maintaining access to care for rural communities.

"While many hospitals and health systems are facing unprecedented challenges, those faced in rural America are unique,” said Rick Pollack, AHA president and CEO. “We must ensure that hospitals have the support and flexibility they need to continue to be providers of critical services and access points for patients and communities."

Although rural hospitals face ongoing challenges, the report suggests ways to achieve financial stability. Alongside policy solutions to support rural hospital in maintaining access to care for their communities, additional approaches may include flexible models of care, decreased regulatory burden, partnership arrangements and state Medicaid expansion.

The Medicare-dependent Hospital (MDH) and enhanced Low-volume Adjustment (LVA) programs both provide support to rural hospitals in an effort to offset financial vulnerabilities, but these critical programs expire on September 30, 2022, without further action from Congress. To allow rural hospitals to continue serving their communities, the AHA urges Congress to extend the MDH and LVA programs.