Rural Hospitals the ‘Lifeblood’ of the Community
A new report from the Virginia Hospital & Healthcare Association examined the fragile nature of rural hospital operations.
- The Virginia Hospital & healthcare Association (VHHA) released a new report that examined the importance of Virginia’s 37 rural hospitals to their local communities and the challenges that they face in today’s difficult operating and regulatory environments. Entitled, “No margin for Error: Virginia’s Rural Hospitals at a Crossroads,” the report offers a unique view at the obstacles that rural hospitals face.
A rural hospital is defined by Centers for Medicare and Medicaid Services in one of four ways.
•Located at least 35 miles from another hospital
•Located between 25 and 35 miles from a like hospital (no more than 25 percent of residents become inpatients or fewer than 50 beds)
600+ Hospitals Sue Over $840M in Medicare Reimbursement Cuts Providers, Lawmakers Say #StopTheCuts to Physician Fee Schedule 21 States Have Overbilled the FFS Medicare Program •Located between 15 and 25 miles from like hospitals but topography or severe weather make it inaccessible for at least 30 days
•Because of distance, posted speed limits and predictable weather conditions, the travel time between hospitals is at least 45 minutes.
“Rural hospitals are the lifeblood of much of Virginia,” John Fitzgerald, chairman of the VHHA Board of Directors and CEO of Inova Fair Oaks Hospital, said in the report. “They provide emergency medical care to those in need and preventative care that sustains communities. They also employ tens of thousands of Virginians and drive local economies. Unfortunately, by practically any measure, Virginia’s rural hospitals are under tremendous stress.”
He added that the bottom line is that half of these hospitals are operating in the red and some have been doing so for several years. In 2012, seven of Virginia’s 37 rural hospitals had a negative net worth and 20 rural hospitals had a negative operating margins.
The goal of the report is to highlight these organizations and look at the unique challenges facing Virginia’s rural hospitals. This is important because even the slightest policy change can have dramatic effects in these hospitals and their services.
VHHA President and CEO Sean Connaughton said in the report that the future of Virginia’s rural communities is intertwined with their hospitals. Because of this, the state’s policy makers must coalesce around solutions that ensure theses hospitals are able to succeed.
According to the study, rural hospitals impact the community in a number of different ways. In 82 percent of rural counties, healthcare is among the top five largest employers. Furthermore, Virginia’s rural hospitals are projected to undergo federal reimbursement and funding cuts of $183 million in fiscal years 2015 and 2016 alone.
Sean McMurray, the CEO of Johnston Memorial Hospital, said these jobs created by hospitals are critical for rural communities.
“Every job in one of our hospitals equates to two jobs elsewhere in the local economy,” McMurray said. “Losing practice areas or a rural hospital impacts jobs, hurts the health and wellbeing of local residents and significantly impacts a community’s ability to attract and retain other employers.”
For these rural hospitals, a healthy revenue cycle means more than just staying open. It’s keeping communities alive.
