More than 800 rural hospitals at risk of closure

Editor's Note

A report from the Center for Healthcare Quality and Payment Reforms finds more than 800 rural hospitals—40% of rural hospitals in the US—are either at immediate or high risk of closure.

The more than 300 rural hospitals at high risk of closure have low financial reserves or high dependence on nonpatient revenues, such as taxes or state subsidies. Those at immediate risk of closure had a cumulative negative total margin during the most recent 3 years for which data were available, and the pandemic likely made their financial situation worse.

Among the number and percentage of rural hospitals at high risk of closing in each state are:

• Alabama: 30 (63%)
• Arkansas: 29 (60%)
• Kansas: 76 (72%)
• Mississippi: 41 (62%)
• Missouri: 31 (54%)
• New York: 30 (59%)
• Pennsylvania: 18 (42%)
• Texas: 82 (56%)
• Washington: 20 (50%).

These estimates likely understate the severity of the problem, the authors say. Margins at many hospitals may be worse because of the higher costs hospitals incurred during the pandemic and a reduction of revenues as a result of patients avoiding non-emergency care.