6 CA Hospitals At 'Immediate Risk' For Closure, New Analysis Says

CALIFORNIA — Six struggling California rural hospitals are among 300 nationwide that are at “immediate risk of closure,” a new report says. The report comes as Medicaid changes are contemplated in the House Republican budget bill unveiled earlier this week.

The report from the Center for Healthcare Quality and Payment Reform said the proposed cuts threaten to upend health care in some of the nation’s most vulnerable communities. Some 66 million Americans live in rural areas, according to the 2020 Census, including about 5.8% of California residents, according to American Community Survey data.

California has 58 open rural hospitals. The six at immediate risk of shutting down represent just over 10% of the state’s rural hospitals. In all, 23 of California’s rural hospitals are threatened by the proposed cuts, the report said. Nationally, about 700 rural hospitals — one-third of the total inventory of these institutions — are on unsure financial footing, according to the report.

Overall, 26 rural hospitals, or 44.8% of them, in California have cut services.

Nationally, nearly 200 rural hospitals have closed since 2005, including eight in California. As a result, millions of Americans no longer have access to emergency rooms, inpatient care and other health care services taken for granted in other parts of the country, the report said.

In general, these institutions operate on narrow margins, and Medicaid funding is the backbone of their funding, especially in those areas with a high rate of participation in public insurance enrollment.

“Reports that Congressional Republicans’ proposed a $715 billion cut to Medicaid jeopardizes rural hospitals and will take health coverage away from 13.7 million people are exactly correct," Rep. Mike Thompson, Congressman who represents California's Fourth District, told Patch.

"This is a problem, which is why I have been sounding the alarms. And it’s not just me — thoughtful Republicans representing rural areas are also sounding the alarms as well. At a time when rural hospitals are already struggling, these cuts will cause even more hospitals and clinics to cut services or shut down altogether. This means people in rural areas will be forced to delay care and travel farther for treatment. Every person who seeks medical care will be hurt by this. It’s bad policy and it’s going to affect millions of people.”

The report’s authors said most of the at-risk hospitals are in isolated communities, and their closure would mean residents would be required to travel long distances for emergency, obstetric or inpatient care. Additionally, these institutions are often the only places people can get lab tests or imaging studies and may be the principal source of primary care in the community.

Hospital closures could have far-reaching economic impacts beyond the loss of health care services, the report warned.

“As a result, closure of the hospital would cause a loss of access to many essential healthcare services,” the authors said. “In addition, rural hospital closures threaten the nation’s food supply and energy production, because farms, ranches, mines, drilling sites, wind farms, and solar energy facilities are located primarily in rural areas, and they will not be able to attract and retain workers if health care isn’t available in the community.”

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