The rapid spread of COVID-19 in rural populations has further weakened the ability of rural health facilities to meet the needs of their communities. This negative trend runs headlong into the accelerated pace of rural hospital closures over the last decade, stemming from the downward pressures on the safety net reimbursement upon which these facilities rely.
Since 2010, 135 rural hospitals have closed and research shows that as of February 2021, another 453 rural hospitals remain vulnerable to closure. As the pandemic has progressed, many rural providers had been forced to suspend or limit outpatient procedures and services, further compounding financial instability.
Through early 2021, 46 percent of rural hospitals in the United States operate at an operating loss, up from 39 percent in 2015.
Unstable Landscape:
Within this unstable landscape, it becomes apparent that rural hospitals operate with very little margin for error. Establishing a culture of solvency is more important than ever, particularly as studies show the average rural hospital has approximately 33 days cash on hand. The “new normal” of increased utilization of personal protective equipment (PPE) along with increased labor spend will also present rural hospital administrators with more non-reimbursable costs than previously planned. However, this pandemic also presents a significant learning opportunity for rural hospitals to better manage their financial positions, while responding to further waves of the virus. The financial challenges that rural hospitals face within a pandemic are numerous, however solutions exist both novel and traditional, that can significantly mitigate the impact.
Communication
The rapid spread of COVID-19 in rural populations has further weakened the ability of rural health facilities to meet the needs of their communities.
Read MoreConvenience
Gunnison Valley Health began vaccinating employees on December 16, 2020. By May 18, 2021, 82% had received at least one dose of vaccine.
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Continuity
The rapid spread of COVID-19 in rural populations has further weakened the ability of rural health facilities to meet the needs of their communities.
Vaccination is Key
This negative trend runs headlong into the accelerated pace of rural hospital closures over the last decade, stemming from the downward pressures on the safety net reimbursement upon which these facilities rely.
Stemming from the downward pressures on the safety net reimbursement upon which these facilities rely. Since 2010, 135 rural hospitals have closed and research shows that as of February 2021, another 453 rural hospitals remain vulnerable to closure.
Within this unstable landscape, it becomes apparent that rural hospitals operate with very little margin for error. Establishing a culture of solvency is more important than ever, particularly as studies show the average rural hospital has approximately 33 days cash on hand.
The “new normal” of increased utilization of personal protective equipment (PPE) along with increased labor spend will also present rural hospital administrators with more non-reimbursable costs than previously planned. However, this pandemic also presents a significant learning opportunity for rural hospitals to better manage their financial positions, while responding to further waves of the virus.
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