A recent report from Chartis, a healthcare advisory services firm, found that 45 Texas rural hospitals are at risk of closure. The state's total composes the highest percentage of the 418 rural hospitals in the U.S. at the risk of closure.
"The findings in the new report from Chartis unfortunately echo what hospital advocates and our own research have been saying: Texas rural hospitals are struggling and need policymakers' attention," Jennifer Banda, senior vice president of advocacy and public policy at the Austin, Texas-based Texas Hospital Association, said in a statement shared with Becker's.
Similar to the Chartis report's findings, the THA commissioned a Kaufman Hall report in 2022 that revealed 26% of Texas rural hospitals were at risk of closure.
"All data about rural hospitals show very clearly that they're facing continuing and critical challenges, from physician shortages to reimbursement denials that ultimately cripple access to care in these remote regions," Ms. Banda said.
One point from the Chartis report that stood out to Ms. Banda that highlighted the challenges for rural hospitals is the large share of rural Medicare-eligible patients in Medicare Advantage.
"Insurers are notorious for engaging in administrative delay and denial practices that consistently hurt patients and rural hospitals," Ms. Banda said. "These anti-consumer practices weigh down a hospital's ability to do its job and add undue burdens to rural hospitals."
Ms. Banda said that the THA and lawmakers have continued to battle rural hospital challenges both in Washington, D.C., and at the Texas Capitol in Austin.
"In the most recent state budget, lawmakers tripled Medicaid rural labor and delivery add-on payments and boosted funding for rural residencies through a new physician grant program."
While these movements are a step in the right direction, she said more work needs to be done.
"The data is clear that rural hospitals are still in desperate need of help from lawmakers," Ms. Banda said.