CMS’ new $50 billion rural health fund seeks to help rural providers sustain care in their communities over the next five years. However, experts believe the program will not be enough to stabilize the finances of rural hospitals — especially in the face of worsening reimbursement issues, an ongoing workforce crisis and billions of dollars’ worth of Medicaid cuts on the horizon.
House Republicans proposed Medicaid cuts last month that would have disastrous financial consequences for hospitals, especially for those in rural areas. While the plan aims to reduce government spending, healthcare executives are pointing out that these cuts would actually exacerbate the financial instability of the overall U.S. healthcare system — as well worsen health outcomes for millions of people, many of whom are children.
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Financial analysts have said that 2022 may have been the worst year for hospital finances in decades. This year looks like it will be yet another year of financial underperformance, with rural providers in especially dire circumstances.
Rural hospitals face a battle on two fronts with the Covid-19 pandemic. Many have invested funds to staff up or bring in additional beds to prepare for the pandemic. On top of that, cancelled procedures have delivered a blow to their bottom line.