A new report warns that dozens of rural Missouri hospitals are at risk of closing because revenue is not keeping up with costs.
The Center for Healthcare Quality & Payment Reform says Missouri has 29 at risk of closing, with 12 in immediate jeopardy. The report says since 2015, Missouri has had nine rural hospital closings – ranking Missouri among the 10 worst states for rural hospital closings.
Nationally, more than 700 rural hospitals – one-third of all rural hospitals in the country – are at risk of closing because of money problems. Over 300 of these are at immediate risk of closing.
Experts say closures would force patients to travel farther for care and could worsen health outcomes in rural communities.
What’s the primary reason rural hospitals are at risk of closing? The report says private insurance plans are paying them less than what it costs to deliver services to patients. Although the at-risk hospitals are losing money on uninsured patients and Medicaid patients, losses on private insurance patients are the biggest cause of overall losses.
The report recommends ways to help prevent closures:
*Make significant changes to private insurance companies and public insurance programs in both the amounts and methods they use to pay for rural hospital services.
*Payments that are sufficient to cover the cost of services at large hospitals are not adequate at small rural hospitals because it costs more to deliver healthcare in rural communities.
Missouri is set to receive $216 million in federal funding for its 58 rural hospitals during the 2026 fiscal year.
To see the full report, click here.
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