Entering Pandemic’s Third Year, Rural Hospitals Under Threat from Rising Health Disparities and Inequity, Workforce Shortages and Revenue Cuts

CHICAGO & WASHINGTON--(BUSINESS WIRE)--The Chartis Group, a leading provider of comprehensive advisory services and analytics to the healthcare industry, today published a new study, ‘Pandemic Increases Pressure on Rural Hospitals & Communities,’ exploring the key dynamics shaping – and shaking – the rural health safety net. Findings from the new study will be shared during the National Rural Health Association’s 33^rd annual Rural Health Policy Institute Conference, which is taking place virtually today through Thursday, February 10.

“Our nation’s rural communities are becoming places in which residents are increasingly vulnerable as health disparities, health inequity and socioeconomic determinants deepen,” said Michael Topchik, National Leader of The Chartis Center for Rural Health. “This underlying reality reminds us of the frailty of the safety net, and is particularly relevant as a new workforce crisis, vaccine resistance and reinstatement of reimbursement cuts all threaten to quickly undermine any measure of stability achieved through pandemic relief funds.”

For more than a decade, the rural health safety net has been under pressure and eroding. Since 2010, 138 rural hospitals have closed, and our own analysis indicates another 453 are vulnerable to closure. The arrival of the COVID-19 pandemic introduced new challenges (i.e., the suspension of outpatient services and a lack of inpatient beds), while further complicating existing pressure points (i.e., the recruitment and retention of clinical staff and worsening community health status). The analysis in this study should serve as a useful starting point for rural healthcare advocates and policymakers working to develop new solutions aimed at creating long-term stability across the rural health safety net. The study’s key findings include:

• Rural communities are disadvantaged socioeconomically and are burdened with greater health disparities such as chronic disease, poorer health status, and racial inequity.

• Pandemic-related relief funds temporarily stabilized rural hospitals and helped slow hospital closures in 2021.

• The full return of the Medicare sequester in July will cost rural hospitals $228.5 million this year, and $457 million in 2023.

• Although the legislative rule Pay-As-You-Go (PAYGO) was avoided for 2022, it would have resulted in a loss of $900 million in rural hospital revenue.

• The rural nurse staffing shortage is an escalating crisis, one that may become exacerbated due to the Supreme Court’s decision last month to uphold the COVID-19 vaccine mandate for healthcare workers.

• Nurse staffing shortages are forcing rural hospitals to scale back services, which is compounding the impact of diminishing access to services such as obstetrics and chemotherapy.

“The workforce crisis, especially as it relates to nursing shortages, is a pressure point that bears careful watching. This is not only an issue that impacts a rural hospital’s ability to accept and care for patients but may over time dramatically expand the ‘care deserts’ we’ve seen grow across rural America and prevent hospitals from adding new services needed within their communities,” added Topchik.

Resources

“Pandemic Increases Pressure on Rural Hospitals & Communities” can be read HERE.

Michael Topchik will be discussing rural health disparities and inequity during a session at the National Rural Health Association’s Rural Health Policy Institute Conference on Tuesday, February 8 at 1:30 p.m. ET. Learn more at https://www.ruralhealth.us/events/event-details?eventId=17.

About The Chartis Group

The Chartis Group® (Chartis) provides comprehensive advisory services and analytics to the healthcare industry. It brings critical thinking and deep industry experience paired with cutting-edge data, analytics, and technology to deliver #NextIntelligence. With an unparalleled depth of expertise in strategic planning, performance excellence, health analytics, informatics and technology, digital and emerging technologies, clinical quality and operations, and strategic communications, Chartis helps leading academic medical centers, integrated delivery networks, children's hospitals, and healthcare service organizations achieve transformative results and build a healthier world. Chartis has offices in Atlanta, Boston, Chicago, New York, Minneapolis, and San Francisco. For more information, visit www.chartis.com.