A new report said 700 rural hospitals across the U.S., including four in Indiana, are at risk of closing due to financial problems.
A study from the Center for Healthcare Quality and Payment Reform showed that 15 of Indiana’s 54 rural hospitals, over a quarter, are operating at a loss.
Another report from Chartis said that in the last 12 months, the number of rural hospitals operating in the red in the U.S. jumped from 43 percent to 50 percent.
Both of these reports point to Medicaid and private insurance plans that cover as little as 57 cents on the dollar to deliver services to patients as part of the problem. Indiana in particular has lower Medicaid reimbursement rates than many other states.
The rising cost of goods and services and the fact that these hospitals serve smaller populations than their urban counterparts are contributing to the situation.
The report from the Center for Healthcare Quality and Payment Reform said that by redesigning the state’s hospital assessment fee, Indiana could maximize its share of federal dollars to increase Medicaid reimbursement at no cost to the state.
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