Rural Hospital Closures Increased with Falling Inpatient Use

10 Oct Rural Hospital Closures Increased with Falling Inpatient Use

The GAO found that most rural hospital closures were the result of financial distress. A 2016 study found that rural hospitals that closed from 2010-2014 had a medial operating margin of -7.41%. The GAO also found a disproportionately higher number of closures among rural hospitals with for-profit ownership. Overall, there has been a declining demand for patients seeking inpatient care at rural hospitals. The report indicates that an increased competition among rural providers is leading to closures among hospitals that qualify under the Low Volume Hospital Medicare payment designation. Combined with a decline in rural population, this small volume of patients is able to obtain healthcare services from different providers like federally qualified health centers.