The Current Status of Rural Healthcare – Kaufman Hall

The State of Rural Healthcare is facing significant challenges, as illustrated in this week’s graphic. In 2024, there were 5 rural hospital closures, a decrease from the previous year but an increase from the pandemic years when Covid aid supported hospitals. Despite these closures, 36 rural hospitals obtained rural emergency hospital (REH) designations since January 2023. While the REH program bolsters emergency services, it also results in a considerable loss of care access. Although the program’s uptake has been limited, it likely prevented some hospitals from closing entirely or converting during this period.

Rural hospitals continue to grapple with a precarious financial landscape. Approximately one-third of all rural hospitals face closure due to financial challenges, with almost half of these hospitals at immediate risk of shutting down due to severe financial distress. Moreover, at least half of rural hospitals in ten states are at risk of closure. When a rural hospital closes, it poses a critical loss to the community, where timely access to care can be a matter of life or death. Unfortunately, many payment models do not consider the elevated costs of delivering care in such communities.

While current federal efforts aim to preserve critical care access in rural areas, these communities would benefit from a new care model. This model should include redesigned facilities and enhanced virtual connections to specialists and higher-acuity services. By implementing innovative approaches and leveraging technology, rural healthcare institutions can adapt to the evolving landscape and better serve their communities.

In conclusion, rural hospitals face significant challenges in maintaining their operations. The closure of rural hospitals poses a serious threat to communities, where timely access to care is crucial. By reimagining healthcare delivery models and embracing advancements in technology, rural healthcare institutions can enhance their services and ensure continued access to quality care for residents in rural areas.