Rural Hospitals Face Growing Financial Trouble, Says Moody’s

Moody’s says that even as some nonprofit health systems prosper, others are falling short. According to Les Masterson in Healthcare Dive, the Moody’s report indicates that “28.4 percent of nonprofit hospital experienced operating losses, an increase from 16.5 percent in 2016. Also, 59 percent of providers reported lower absolute operating cash flow, which was more than double the 24 percent noted in 2015. The 2017 figure was the highest percentage in five years.”

Of these troubled nonprofit health systems, rural hospitals face the greatest challenges. Since 2010, the University of North Carolina’s Cecil G. Sheps Center for Health Service Research has recorded 87 rural hospital closures in more than 20 states. According to one study, an additional 673 hospitals are vulnerable to closing, located across 42 states, with an estimated 99,000 jobs at stake. Nearly 12 million patients could lose direct access to care.