Nearly half (48 percent) of general acute care hospitals located in rural counties operated at a loss during fiscal year 2023, according to a recently report by the Harrisburg-based Pennsylvania Health Care Cost Containment Council.
The council collects and analyzes data about the cost and quality of health care in Pennsylvania, and makes recommendations to the legislative or executive branches upon request regarding existing and proposed mandated health insurance benefits. The council’s annual reports provide a recap of the work and includes a breakdown of data requests and other information. The Special Report on the Financial Health of Pennsylvania Rural Hospitals, Fiscal Year 2023, provides data for 64 hospitals.
“As rural hospitals close or reduce services due to financial pressures, residents of these areas may face longer travel times to access care, reduced availability of emergency services, and a potential general decline in the quality of health or health care services,” Barry D. Buckingham, council executive director, said.
Rural hospitals often serve smaller, aging populations. This makes it difficult to generate enough revenue to cover costs, especially considering aging populations require more complex and expensive care.
Rural hospitals have higher operating costs yet receive lower payments from private insurers, Medicare, and Medicaid.