Closure of rural hospitals negatively affects small town services and growth

by Terri Dee
Illinois News Connection

CHICAGO - The federal government is launching a new program to help hospitals struggling to stay afloat in rural Illinois.

Severe financial problems have put 360 rural hospitals nationwide at immediate risk of closing. Fifteen rural Illinois hospitals have closed since 2015, according to a Center for Healthcare Quality and Payment Reform report.


Rural hospital closures can negatively affect the nation's food supply and energy production

The National Rural Health Resource Center is launching the federal Rural Hospital Stabilization pilot program to prevent further closings.

Alyssa Meller, chief operating officer of the pilot program, outlined its objectives.

"It is a program that's aiming to improve the health care in rural communities by really helping keep health care services available locally to increase patient volume and improve revenue," Meller explained.

The report showed rural hospital closures can negatively affect the nation's food supply and energy production. Farms and solar energy facilities are located mostly in rural areas. Those without health care facilities have a hard time attracting and retaining workers.

Meller noted several things contribute to hospitals' financial woes, including people bypassing local services and going elsewhere, fixed costs exceeding reimbursement rates from Medicare and Medicaid, and a lack of services tailored to meet community needs.

"This program then will help stabilize their current service line but also will help them dive into what is needed at that local level and provide technical assistance and support," Meller added.

The report indicated of Illinois's 74 rural hospitals, 10 are at risk of closing, and six are at immediate risk of closing. Meller said the program will also help engage the hospitals' communities to promote services. The application period ends Jan. 15.




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