Dive Brief:
- An iVantage Health Analytics report says 673 rural hospitals, representing more than 33% of U.S. rural hospitals located across 42 states, are "vulnerable to closure," with 210 being the most vulnerable and 463 being at risk.
- Some of the drivers of these hospital closures, according to iVantage, include loss of market share; lower patient volumes; declines in quality and outcomes; and decreases in reimbursements.
- Geographically, southern states have higher rates of vulnerability. For example, Mississippi's vulnerability rate is 79% while Louisiana has a rate of 58%. In addition, 63% of hospitals vulnerable to closure are in states that have opted not to expand Medicaid.
Dive Insight:
More than 60 rural hospitals have closed since 2010.
The iVantage Health report estimated if the 673 vulnerable hospitals shut down, it would result in a $277 billion loss to the Gross Domestic Product (GDP) over 10 years, a loss of 99,000 healthcare jobs in rural communities, and 11.7 million patients would lose direct access to care.
The bipartisan Save Rural Hospitals Act, (H.R. 3225) introduced in July 2015 by U.S. Representatives Sam Graves (R-MO) and Dave Loebsack (D-IA), will provide rural hospitals financial and regulatory relief to enable them to stay open.
The bill also includes additional funding for rural providers and EMS, grants for population health initiatives, and to assist with changing to value-based payment models.