Rural hospitals

“Rural Emergency Hospital” Designation Making a Difference for Some Communities

The new (since 2023) classification of some hospitals as “Rural Emergency Hospitals” is proving to be an effective tool for preserving access to care in some rural communities. The program, introduced to help stem the closure of rural hospitals, which was leaving many communities without reasonable access to care, appears to be having the desired effect. Among the benefits reported by the administrators of such hospitals – which must apply for this special federal designation – are preservation of access to emergency and outpatient services, including surgery, laboratory, imaging, and therapy, in communities where they were otherwise in jeopardy; financial [...]

joe2026-03-11T11:18:59-04:00March 12, 2026|340b, hospitals, Medicare|

Rural Health Transformation Plans Face Pushback

In states across the country, legislators, hospital and health care groups, and others are objecting to the plans their state governments submitted to the federal government for how they would like to spend Rural Health Transformation funds – plans that federal regulators have already approved. In Colorado, Michigan, North Dakota, Nebraska, and Wyoming, legislators have even threatened to withhold the enabling legislation needed to spend the federal money. One of their primary objections is that the approved Rural Health Transformation program plans, consistent with federal guidelines, focus on innovation in the delivery of rural health care and do not help [...]

joe2026-03-04T12:23:38-05:00March 5, 2026|Congress, hospitals|

Non-Profit Hospitals Face Near-Term Challenges

The end of Affordable Care Act enhanced health insurance premiums will pose a financial challenge for many of the nation’s non-profit hospitals. The challenge to hospitals will be greatest in states that did not take advantage of Affordable Care Act Medicaid expansion and those with especially large concentrations of rural hospitals that also lack a robust health care safety net. On safer ground will be hospitals in states that do have strong health care safety nets or that have taken recent steps to attempt to fill the void left by the expired insurance premium subsidies. Learn more about the challenges [...]

joe2026-02-05T15:07:41-05:00February 9, 2026|Affordable Care Act, hospitals, Medicaid|

Erosion of Rural Maternity Care Continues

At a rate of more than two a month since the end of 2020, rural hospitals have closed or announced that they will be closing their maternity units – 124 in all by the end of 2026. As a result, today only a little more than 40 percent of rural hospitals – most of them safety-net hospitals – continue to provide maternity services, with fewer than a third of such rural hospitals doing so in 12 states. The hospitals blame a number of factors for this continued erosion, including inadequate private insurance and Medicaid payments and difficulty recruiting the providers [...]

joe2026-01-27T16:25:01-05:00January 28, 2026|hospitals, Medicaid|

Urban Safety-Net Hospitals Most Vulnerable to Looming Health Care Cuts

While a great deal of attention has been paid to the potential implications for rural hospitals of the coming $1 trillion in federal health care spending cuts over the next decade, it turns out that urban safety-net hospitals, not rural hospitals, may be even more vulnerable to the effects of these cuts. According to an analysis by the New York Times and Harvard’s T.H. Chan School of Public Health, of the 109 hospitals in the country that will be most vulnerable to these cuts, 85 percent are urban safety-net hospitals and not rural hospitals. Three factors drive this vulnerability: their [...]

joe2025-12-04T16:51:55-05:00December 8, 2025|Congress, hospitals, Medicaid|

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 [...]

joe2025-11-12T12:40:41-05:00November 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 [...]

joe2025-10-28T11:46:55-04:00October 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 [...]

joe2025-07-23T10:30:29-04:00July 23, 2025|Centers for Medicare & Medicaid Services, Congress, hospitals, Medicaid|

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 [...]

joe2024-03-13T14:54:41-04:00March 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 [...]

iqtsupport2023-10-25T01:00:35-04:00October 25, 2023|hospitals, Medicare, Medicare reimbursement policy|