More than 400 rural hospitals across the country are at risk of closure, battling a mix of reimbursement issues, workforce struggles and policy decisions that have left safety net providers financially exposed.
Undeniably, the rural healthcare crisis carries serious consequences for population health and people’s access to care, but there are also ripple effects that impact the economic stability of rural America itself. Healthcare isn’t just a social good — it’s a foundational infrastructure that determines whether rural communities can attract businesses, sustain populations and be economically viable.
I asked panelists to reflect on this idea Sunday during a rural health panel I was moderating Sunday afternoon at ViVE in Los Angeles, and they agreed that access to healthcare is a prerequisite for any kind of rural economic development.
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Joe Dunn, chief policy officer at the National Association of Community Health Centers (NACHC), noted that rural communities where residents must drive hours to reach hospitals or specialist care are fundamentally unattractive to employers — whether that’s a factory, processing plant or small business.
He noted that healthcare is a “backbone” of economic vitality, emphasizing that no community can thrive — nor can the country tolerate — large populations being cut off from both care and opportunity.
Another panelist, Brian Hoerneman, CEO at Marshfield Clinic Health System, pointed out that rural healthcare organizations often serve as anchor institutions that help the local economy grow.
“For years, we’ve been the largest employer in the northern half of Wisconsin, and in many of the other communities we serve, we’re the largest employer. Those jobs then fund local small businesses and make up a significant part of those smaller community economies. So healthcare is kind of neat that way — it’s a big obligation, it’s something we feel every day, but it also has the opportunity to really help support the community,” Hoerneman remarked.
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Gulshan Mehta, chief digital and information officer at Blanchard Valley Health System, added that his health system is the largest employer in its region as well.
He also warned that the economic damage isn’t limited to hospital closures alone. The loss of individual service lines, such as obstetrics or timely emergency services, can be just as destabilizing. When residents have to travel long distances for basic care, these delays compound health risks across the area.
“You start thinking about the commute times becoming a real clinical variable when it comes to the outcomes of healthcare — not only for the individual, but for the community in general,” Mehta declared.
Overall, the panelists believe that healthcare is the foundation that keeps rural communities alive — both literally and economically.
Photo: Thomas Barwick, Getty Images