Healthcare in the United States has its difficulties, and one of the most significant problems affects rural hospitals. Rural hospital closures continued to soar in 2023, and poor financial health put hundreds of hospitals across the country at risk. From the most current data analysis by the Center for Healthcare Quality and Payment Reform (CHQPR), it is evident that 690 rural hospitals are in danger of shutting down and several states are in a precarious state.
This blog summarizes the April 2024 report of the CHQPR, which highlights which states are most vulnerable to the threat of further closures of rural hospitals and what might explain these grim tendencies.
Why Are Rural hospital closures Happening?
Community hospitals, especially those in rural settings, have historically experienced many issues regarding operations, low patient volumes, a high proportion of uninsured patients and restricted access to care. But recently, financial conditions have lowered significantly. These factors of increased operating costs, labor scarcity, and the reduction of federal support for rural hospital operational programs are putting the hospitals under financial pressure.
COVID further worsened these challenges, and most rural hospitals are now operating in critical conditions. About 18 rural hospitals shut down in 2020, and another 8 shut their doors in 2023, but that only makes up 2023’s tally not 2021 and 2022.
Risk of Closure:
The CHQPR report categorizes rural hospitals at risk of closure into two groups:
- Hospitals at Risk of Closure: These hospitals may close down in the next six to seven years because they have very little cash and no long-term investments.
- Hospitals at Immediate Risk of Closure: These facilities can be shut down within two to three years since they do not have enough funds to mitigate operational expenses for more than a short term.
Roughly, half of the states in the USA have more than a quarter of its rural hospitals on the brink of closure, and eight are largely in this position.
States with the Most Risk of Rural Hospital Closures
Ranked by the percentage of hospitals closing within 2-3 years, the following are the 25 states where rural hospitals are at the most risk of closure:
1. New York
- Immediate Risk: 45% (23 hospitals)
- Overall Risk (6-7 years): 57% (29 hospitals)
2. Alabama
- Immediate Risk: 44% (23 hospitals)
- Overall Risk (6-7 years): 58% (30 hospitals)
3. Mississippi
- Immediate Risk: 34% (25 hospitals)
- Overall Risk (6-7 years): 52% (38 hospitals)
4. Connecticut
- Immediate Risk: 33% (1 hospital)
- Overall Risk (6-7 years): 67% (2 hospitals)
5. Tennessee
- Immediate Risk: 31% (17 hospitals)
- Overall Risk (6-7 years): 35% (19 hospitals)
6. Vermont
- Immediate Risk: 31% (4 hospitals)
- Overall Risk (6-7 years): 62% (8 hospitals)
7. Oklahoma
- Immediate Risk: 29% (23 hospitals)
- Overall Risk (6-7 years): 43% (34 hospitals)
8. Arkansas
- Immediate Risk: 29% (14 hospitals)
- Overall Risk (6-7 years): 53% (26 hospitals)
9. Maine
- Immediate Risk: 28% (7 hospitals)
- Overall Risk (6-7 years): 44% (11 hospitals)
10. Virginia
- Immediate Risk: 27% (8 hospitals)
- Overall Risk (6-7 years): 30% (9 hospitals)
11. Kansas
- Immediate Risk: 26% (26 hospitals)
- Overall Risk (6-7 years): 56% (57 hospitals)
12. Florida
- Immediate Risk: 24% (5 hospitals)
- Overall Risk (6-7 years): 38% (8 hospitals)
13. Nevada
- Immediate Risk: 23% (3 hospitals)
- Overall Risk (6-7 years): 38% (5 hospitals)
14. New Mexico
- Immediate Risk: 21% (6 hospitals)
- Overall Risk (6-7 years): 25% (7 hospitals)
15. West Virginia
- Immediate Risk: 21% (6 hospitals)
- Overall Risk (6-7 years): 36% (10 hospitals)
16. South Carolina
- Immediate Risk: 20% (5 hospitals)
- Overall Risk (6-7 years): 40% (10 hospitals)
17. Massachusetts
- Immediate Risk: 20% (1 hospital)
- Overall Risk (6-7 years): 40% (2 hospitals)
18. Texas
- Immediate Risk: 18% (29 hospitals)
- Overall Risk (6-7 years): 48% (77 hospitals)
19. California
- Immediate Risk: 18% (10 hospitals)
- Overall Risk (6-7 years): 32% (18 hospitals)
20. Louisiana
- Immediate Risk: 17% (9 hospitals)
- Overall Risk (6-7 years): 44% (23 hospitals)
21. Pennsylvania
- Immediate Risk: 17% (7 hospitals)
- Overall Risk (6-7 years): 32% (13 hospitals)
22. Missouri
- Immediate Risk: 16% (9 hospitals)
- Overall Risk (6-7 years): 38% (21 hospitals)
23. Georgia
- Immediate Risk: 15% (10 hospitals)
- Overall Risk (6-7 years): 32% (22 hospitals)
24. Colorado
- Immediate Risk: 12% (5 hospitals)
- Overall Risk (6-7 years): 21% (9 hospitals)
25. Alaska
- Immediate Risk: 12% (2 hospitals)
- Overall Risk (6-7 years): 18% (3 hospitals)
Conclusion
Reducing the number of hospitals in rural areas poses a great danger for many Americans who will not be able to access the basic healthcare services they need. The financial burden is a major reason for the Rural hospital closures and it is affecting many citizens of America. The future stability of rural hospitals as vital health care options needs to remain a concern to policymakers and leaders in the health care sector.
