05 Jul 600+ Rural Hospitals Risk Closure
According to a new study by the Center for Healthcare Quality and Payment Reform, more than 600 rural hospitals – 30 percent of all rural hospitals in the U.S. – are at risk of closing in the next 6-7 years due to the financial problems they face. Of these, more than 300 are at risk of closure in the next 2-3 years. The two main sources of financial stress, according to the study, are inadequate payments from insurance plans, the ongoing health care staffing shortages, and low financial reserves. To fix this financial crisis, CHQPR suggests that health insurance plans (both private and public) pay a “Standby Capacity Payment” to support the hospitals’ fixed costs for essential hospital services, in addition to service-based fees for the services administered. To read the full study, click here. July 2023