Thursday, December 9, 2021

Rural hospitals struggling in South

Rural hospitals have struggled financially to remain solvent, but that situation is getting worse. In the 1940s, Congress provided funds to build rural hospitals, especially in the South. By the 1980s-90s, those hospitals began closing. Since 2005, 181 rural hospitals have shuttered. Causes are many: Older and poorer populations; advance in outpatient procedures; and decisions among some Southern states against expanding Medicaid under the Patient Protection and Affordable Care Act, which leaves hospitals with a greater share of uncompensated care via uninsured patients. The pandemic made matters worse by delaying revenue-producing non-essential services. Sidecar Health cited data from the University of North Carolina’s Sheps Center for Health Services Research to ID how states have been affected by the growing number of rural hospital closures. Data includes closures from 2005 to the present. The UNC center identified 36 states that have been negatively affected. Mississippi was the 11th most affected state. Three rural hospitals closed. In 2019, the state’s hospitals had more than $600M in uncompensated care. Total beds lost: 290. Alabama No. 10. Like Mississippi, Alabama is among Southern states that has not expanded Medicaid coverage. Before the pandemic, 30 rural hospitals were at risk of closing. Five closed. Total beds lost: 180. In-state hospitals need about $200M in federal funds to make up for lost revenue, according to the Alabama Hospital Association. Louisiana No. 22. Two rural hospitals have closed since 2015, Lost number of beds: 127. Louisiana’s rural hospitals were helped by the state’s expansion of eligibility for Medicaid in 2016. By 2018, 487,000+ had signed up for Medicaid. COVID-19 sparked another surge through November 2020. Hospitals where Medicaid eligibility was expanded saw their uncompensated costs drop, according to a paper from The Commonwealth Fund. About 57M people in America live in rural communities, leaving a portion of residents without easy access to emergency health care. (Source: Sidecar Health 12/01/21) 181 rural hospitals have closed since 2005—see the states that have been impacted | Sidecar Health

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