21 percent of rural hospitals are at high risk of closing, new study finds

Considering factors such as total operating margin and days cash on hand, a recently released study by Navigant found that more than one-in-five rural hospitals — or 430 hospitals across 43 states employing 150,000 people — present a high risk of closing.

The study, which analyzed more than 2,000 rural hospitals across the country, also found:

• Of these high-risk hospitals, 64 percent, or 277, are considered critical to the health and financial well-being of their communities
• States in the South and Midwest are expected to be hit by closures the hardest
• This crisis was brought on by several factors, including low rural population growth, payer mix degradation, and a lack of capital to invest in and benefit from technology

The study presented a few solutions, including partnerships between rural hospitals and academic and regional health systems to share resources such as telehealth capabilities, revenue cycle management efficiencies and human capital. Learn more about the study here.

For more information on this topic, or to learn how Baker Tilly healthcare specialists can help, contact our team.