Why do Rural Hospitals close? Suburban Advantages

Large non-profit healthcare providers cite a decrease in patient population and high upkeep costs as reasons for closing their rural treatment centers, but the true reason is financial problems stemming from a lack of payments from private health plans. Rural communities provide about half of their services to patients with private insurance, and these private insurers do not cover the higher cost of care that comes from being treated in a rural hospital.

Hospitals in wealthy suburbs are more likely to make money from the care they provide as compared to rural hospitals, meaning the hospital systems are less likely to leave those communities behind. The care deserts established in rural communities leave residents floundering for solutions. Read more about the 700 rural hospitals at risk of closing as of 2024 here.