News: 350 rural hospitals at “high risk” of closure, COVID-19 likely to make it worse
A Guidehouse analysis found that one quarter of rural hospitals are at high risk of closing due to financial challenges, reported HealthLeaders Media.
That means, more than 350 rural hospitals, accounting for $8.3 billion in total patient revenue, are at risk. The five states most likely to be impacted by hospital closures include Tennessee, Oklahoma, Mississippi, Alabama, and Kansas, according to the analysis.
Guidehouse conducted its research prior to the outbreak of COVID-19 but stated in the report that the pandemic is "likely to worsen the overall situation."
The analysis offered strategic advice for rural provider executives, including a focus on scale through partnerships with regional health systems or academic medical centers, and working with community leaders to "promote and sustain" hospital operations and the outflow of patients to distant care sites.
The analysis suggested that though there is not one single solution to remedy the complex financial challenges facing rural providers, federal lawmakers have legislative options to lessen the burden.
Namely, Guidehouse cited the Rural Emergency Acute Care Hospital (REACH) Act, a bipartisan bill introduced in 2017, that would allow critical access hospitals to align the care delivery model to the needs of the community without the "financial disincentive of losing cost-plus reimbursement." Additionally, the bill would allow CAHs to shed excess inpatient beds and shift focus to outpatient care options, reported HealthLeaders Media.
Proper documentation can also help to ease the issue, even with some states lightening documentation requirements during the COVID-19 pandemic. In this uncertain time, a balance must be found between easing documentation burdens upon providers, while still capturing the appropriate information in order to receive accurate reimbursement and capture the patients’ data correctly and completely.
Editor’s note: This story originally appeared in HealthLeaders Media.