Healthcare 2019 Trends -Rural Hospitals and Residents at Risk 0519

Rural hospitals are essential to the health of communities nationwide. Beyond providing care, they’re also economic engines, often the largest employer and a driver of additional businesses and jobs to communities. Since 2010, 5% of rural hospitals have shut down, and the economic effects are immediate — one study found that when a community loses its hospital, per capita income falls by 4% and the unemployment rate rises by 1.6%. These hospitals are more apt to struggle since their populations often have higher rates of uninsured, Medicaid, and Medicare patients, leading to more uncompensated and under-compensated care. And the biggest problem is that the trend looks likely to accelerate. A Navigant analysis shows that nearly one-in-four rural hospitals are at a high risk of closing unless their financial situations improve. The figure is approaching 50% for states like Mississippi, Alaska, and Alabama. The situation would significantly worsen in the case of an economic downturn, something that’s looming given that the country is in its longest period of economic expansion ever.

Market Trend:

One-in-four U.S. rural hospitals are at risk of closing, a trend that would worsen as a well-overdue economic downturn looms.

What Providers need to do

Better reimbursement around telehealth can help promote partnerships between rural hospitals and regional tertiary centers and academic medical centers.

Rural hospitals must explore such partnerships and turn to their local and state legislators to help make legislative changes happen.

Dave Mosley

The decline in rural hospital finances and the services they offer their communities will only worsen when the economy hits a rough patch.

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Too Big, Or Not Too Big? Weighing In on Scale

Managing Director

Dave Mosley

The decline in rural hospital finances and the services they offer their communities will only worsen when the economy hits a rough patch. ”

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What Providers Need To Do:

Better reimbursement around telehealth can help promote partnerships between rural hospitals and regional tertiary centers and academic medical centers. Rural hospitals must explore such partnerships and turn to their local and state legislators to help make legislative changes happen.

Download 2019 Trends

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Too Big, Or Not Too Big? Weighing In on Scale

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