More than 600 rural hospitals – nearly 30% of all rural hospitals in the country – are at risk of closing in the near future, according to a report from the Center for Healthcare Quality and Payment Reform. Almost every state has at least one rural hospital at immediate risk of shutting down. Delaware, Maryland, New Jersey and Rhode Island are the only exceptions.
The top risk factors include inadequate revenues to cover expenses and low financial reserves.
In the past, many of these hospitals have received grants, local tax revenues, or subsidies from other businesses that offset their losses on patient services, but there is usually no guarantee that these funds will continue to be available in the future or sufficient to cover higher losses. Read more.
