Financial losses put over 700 rural hospitals at risk of closure

A Center for Healthcare Quality and Payment Reform report reveals that over 700 rural hospitals—more than 30% of the nation’s total—are at risk of closing due to financial difficulties. Of these, 360 are facing imminent closure within the next two to three years due to severe financial issues. The report cites inadequate payments from private insurers as the primary issue, as these do not cover the higher costs of rural healthcare.

This problem has been persistent, with over 100 rural hospitals closing in the past decade and many others shifting to rural emergency hospitals to stay afloat. Some have even cut services; less than half now offer labor and delivery care.

The impact on rural residents is significant, as closures force patients to travel farther for care and lose access to essential services. Nearly every state has rural hospitals at risk, with nine states seeing most at risk of closure. The report suggests increasing payments to cover higher rural costs and providing standby capacity payments to address fixed operational costs.