There's a great website with all of the real facts and solutions about this situation if anyone cares to read about it rather than bicker with half truths and unknowns. There's even a sortable database that you can use to see the rural and urban data in hospitals in a state along with its respective revenue, margins from patient services and total margins.
Saving Rural Hospitals
Some key things I learned in an hour of reading that site vs the experts of SPS.
Medicaid expansion helps a little but not a lot as for most rural hospitals in the US there are more private payers in rural areas that Medicaid and Medicare. Though in Mississippi there are areas like the Delta with higher concentrations of patients that would utilize Medicare expansion than most rural areas. The offset of having more people insured vs the lower payments from Medicare is negligible.
Many rural hospitals are identified as critical and actually get paid more from Medicare than private insurance.
Medicare Advantage sucks. It pays considerably less than Medicare.
Many rural hospitals are even losing their asses in private insurance because it pays rates that work for urban hospitals that have economies of scale. It just costs more relative to revenue to run a rural hospital. IE an emergency room in Jackson and Noxapater are both staffed 24/7. The Jackson ER is constantly generating revenue and Noxapater might go days without a patient.
The 2 big revenue buckets are patient services and "other". Patient services are all the incomes from treatment whether it's paid by Medicare, private insurance, out of pocket, or just goes unpaid. Other is basically income from investments, the cafeteria, but far and away, government funding from taxpayers.
Lots of rural hospitals are underwater on patient services, but make up for it in the "other" category. One mind blowing example of this is the 2 biggest hospitals in MS. UMMC and NMMC. UMMC loses it's *** and then makes it all up and then some on other funding (which includes tuition and taxpayer funds.) NMMC makes a 7% margin on patients and that's their total margin. St. Dominick's in Jackson doesn't have that other funding and is underwater.
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The current fix is to increase local public funding of rural hospitals. Mississippi pays very little tax towards hospitals comparatively. This will "save" a lot of these rural hospitals, but the long-term solution is to get all payers (private and federal insurance) to recognize that you have to pay more for rural services. In the overall scheme fixing this will cost the healthcare system less than 1% of current costs. That's likely to pay itself back by ever so slightly reducing the cost of crops, timber, and other necessities made in rural America that currently face disproportionately higher healthcare costs.
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