August 31, 2022 – More than 130 rural hospitals have closed over the past decade, and close to 900 hospitals – more than 40% of all rural hospitals in the country – are at risk of closing in the near future. Many of these hospitals have lower capacity and struggle to maintain positive operating margins, even with the help of COVID relief funding, grants, and other subsidies.
Margins for hospitals across the country are still cumulatively negative and continue to fall behind pre-pandemic levels, according to a recent report from Kaufman Hall. Patient volume is increasing as more patients are scheduling delayed procedures and emergency room visits have begun to spike due to warmer weather, but these surges are not enough to offset inflation and increased labor costs, per the report. Even with some return to normalcy, hospitals continue to struggle.
Rural hospital closures can have disastrous effects – longer travel times and delayed care for patients, loss of employment for healthcare workers, and community-wide economic depression. Healthcare group purchasing organizations (GPOs) closely monitor the needs of hospitals and are constantly evaluating the best ways to support their members.
Continue reading HSCA’s President and CEO Todd Ebert story in the latest issue of The Journal of Healthcare Contracting at the link below.