Rural hospitals

Labor and Delivery Situation Worsens at Rural Hospitals

Rural America continues to experience the loss of hospital labor and delivery services. With 2025 not yet over, more rural hospitals – 27 – have closed or are in the process of closing their labor and delivery services than did so in 2024 (21). As a result, only 41 percent of the nearly 2400 rural hospitals in the country today provide labor and delivery services. Of the remaining 900 hospitals still providing these services, 127 of them – 13 percent – are considered to be at risk of closing those services. As a result of this shortage, pregnant women face [...]

2025-11-12T12:40:41-05:00November 13, 2025|hospitals|

Impact of H-1B Visa Fee on Hospitals in Underserved and Rural Areas

The new $100,000 fee for H-1B visas is expected to detract from the ability of providers in low-income and rural areas to serve their communities. Providers – especially hospitals – in such areas typically operate on very low margins and always have trouble recruiting physicians and other highly skilled providers and often turn to international medical graduates in search of help.  In fact, a 2021 study published by the National Institutes of Health reported that nearly two-thirds of international medical graduates practiced in areas designated as health professional shortage areas or medically underserved areas, with nearly half practicing in rural [...]

2025-10-28T11:46:55-04:00October 28, 2025|hospitals|

The New Rural Health Fund

Recognizing that the Medicaid and other health care cuts in the recently enacted FY 2026 budget reconciliation bill – the so-called One Big Beautiful Bill – will exact a heavy toll on rural hospitals, Congress included in that bill a short-term Rural Health Fund designed to help ameliorate the impact of some of the cuts it was adopting. KFF Health has taken a closer look at the Rural Health Fund, how it is structured, and how it is expected to work and has identified some of the bill’s major components.  They include: The rural health fund includes $50 billion, which [...]

Rural Hospitals Losing Money, Slashing Services, Mulling Future

Roughly half of rural hospitals lost money last year, according to a new report. Those struggles, moreover, are not a one-time thing:  more than 40 percent were in the same position a year ago and more such hospitals are expected to be in this position a year from now. The problem is worse, moreover, for hospitals in states that did not take advantage of the Affordable Care Act option of expanding their Medicaid programs. In response to these challenges, some rural hospitals are discontinuing services like obstetrics – a serious challenge for hospitals located in isolated communities; exploring Medicare’s new [...]

2024-03-13T14:54:41-04:00March 13, 2024|hospitals, Medicaid, Medicare|

“Rural Emergency Hospital” Status: To Be or Not to Be?

That is the question for many of the country’s small rural hospitals, including the more than 600 that are thought to be in danger of closing in the near future. In 2020 Congress directed the Centers for Medicare & Medicaid Services to introduce the Rural Emergency Hospital, a new Medicare provider type that would give additional federal funding to qualified rural hospitals in exchange for changes in how they do business. For small hospitals that are willing to discontinue providing inpatient services and cease participating in the 340B prescription drug discount program, CMS offers enhanced payments for outpatient services and [...]

2023-10-25T01:00:35-04:00October 25, 2023|hospitals, Medicare, Medicare reimbursement policy|

Seven Apply for Rural Emergency Hospital Designation

With more than 140 rural hospitals closing since 2010 and more currently in financial trouble, a modest number of such facilities are hoping to avoid a similar fate by applying to the Centers for Medicare & Medicaid Services to become “rural emergency hospitals,” a new Medicare provider type created to preserve access to care in rural areas. Hospitals that become rural emergency  hospitals will receive an annual fee of more than $3 million from Medicare and a five percent increase in their Medicare payments but must retain 24-hour emergency services while limiting their inpatient services to leave just enough time [...]

Readmissions Program Changes Produce New Outcomes

Many hospitals are faring better under Medicare’s hospital readmissions reduction program since changes in that program were implemented earlier this fiscal year. According to a new study, safety-net, academic, and rural hospitals have enjoyed improved performance under the program since Medicare began organizing hospitals into peer groups based on the proportion of low-income patients they serve rather than simply comparing individual hospital performance to that of all other hospitals. While the current fiscal year is still under way, it appears that safety-net hospitals will enjoy a collective decline of $22 million in Medicare readmissions penalties while 44.1 percent of teaching [...]

One in Five Rural Hospitals at Risk of Closing

More than one out of every five rural hospitals in the U.S. is at risk of closing, according to a new report. Among the factors putting these hospitals at risk are growing uncompensated care, declining inpatient volume, inadequate reimbursement from public payers, workforce shortages, high drug costs, and the opioid epidemic. More than half of the rural hospitals in Mississippi and Alabama are at risk of closing, as are significant numbers of rural hospitals in Montana, Kansas, and Georgia.  Many of these at-risk hospitals are considered essential to their communities, a measure based on their service to vulnerable populations, the [...]

2019-02-20T13:00:08-05:00February 20, 2019|hospitals|
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