Rural Hospital Closures

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Approximately 14% of Americans live in rural areas and require access to local hospitals. But many rural hospitals are struggling to keep their doors open, citing financial pressures, such as upkeep of equipment and technology.

Dr. Carrie Henning-Smith, a Research Associate at the University of Minnesota, says rural hospitals rely on government funding from programs like Medicare and Medicaid. However, neither program can fully support the upkeep of buildings and the care of the patients. Although Medicare and Medicaid provide funding, 40% of rural hospitals still net a large loss.

Michael Topchik, Director of the Chartis Center for Rural Health, projects that if the current administration cuts Medicaid funding, 15 million recipients will lose health benefits. And the cuts will drastically affect rural hospitals.

Eighty rural hospitals have closed since 2010, and many more could be at risk in the years to come. Topchik says closing these rural hospitals would lead to a loss of 35,000 jobs and a $4 billion drag on domestic product. On top of that, the residents of rural areas would have to travel long distances to get access to basic health care.