46
HEALTHCARE
NEWS
'This is going to be the death blow': Coronavirus
threatens to shut hundreds of rural hospitals
By Alia Paavola
T
he coronavirus pandemic may close hundreds of rural hospitals
across the U.S., the National Rural Health Association and hos-
pital CEOs are warning, according to Kaiser Health News.
e financial crisis comes as hospitals across the U.S. are canceling
elective procedures to free up bed space and resources for COVID-19
patients. Many hospitals rely on these nonurgent procedures to boost
their profit margins, according to the report.
In addition to canceling nonurgent procedures, hospitals are also
being forced to pay higher prices for personal protective gear that
is in short supply.
"If we're not able to address the short-term cash needs of rural hospi-
tals, we're going to see hundreds of rural hospitals close before this cri-
sis ends," Alan Morgan, head of the National Rural Health Association,
which represents 21,000 healthcare providers and hospitals, told Kaiser
Health News. "is is not hyperbole."
Even before COVID-19, rural hospitals struggled to stay afloat due to
rising financial pressures, including lower Medicare reimbursements
and a shrinking patient population, according to the report. As a result,
over the last decade more than 120 rural hospitals have closed.
Rural hospitals have largely survived due to elective surgeries, physical
therapy and lab tests to boost their thin margins. Yet more than half of
rural hospitals operate at a deficit, according to the report, which cited
Chicago-based Chartis Center for Rural Health.
"is virus, and what it is causing for these hospitals, is the perfect
storm that will close these hospitals at a time this country critically
needs them," Robin Rau, CEO of Miller County Hospital in Colquitt,
Ga., told Kaiser Health News. "is is going to be the death blow to
them."
Ms. Rau recently eliminated nonurgent medical services at Miller
County Hospital. She estimates this will cut the hospital's revenue in
half. Other CEOs warned they are expecting a similar financial hit
from eliminating nonurgent procedures. e CEOs are warning that
this means they could miss payroll.
In response to the worsening financial crisis for hospitals, the Amer-
ican Hospital Association requested $100 billion in federal aid for all
hospitals to offset coronavirus costs. In its request to Congress, the as-
sociation said rural hospitals would be unable to weather a prolonged
period of this financial burden. n
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