2018-23 Profitability of Rural Hospitals by Ownership and System Affiliation
Link
Date
06/2024
Description
The causes of rural hospital closures are complex and multifaceted, but unprofitability has been identified as a major contributor.This study compares the 2018-23 profitability of rural hospitals based on ownership and system affiliation status. The purpose of this brief is to describe the profitability of rural hospitals over a five-year period consisting of two years before and three years after COVID-19.
Key Findings:
- Rural hospitals with system affiliation had a higher median total margin than those without a system affiliation in every period except 2021-22. Median profitability of rural hospitals both with and without system affiliation increased over the first four periods, but there was a large decrease in profitability of both in 2022-23.
- For three of the five study periods, the median total margin was highest among for-profit hospitals and lowest among government-owned hospitals. Median profitability of all ownership types increased over the first four periods, but there was a large decrease in profitability among all three types in 2022-23.
- Profitability of rural hospitals in 2020-21 and 2021-22 was influenced by Public Health Emergency funding distributed during the COVID-19 pandemic.
Center
North Carolina Rural Health Research and Policy Analysis Center, Rapid Response to Requests for Rural Data Analysis
Authors
Sruthi Srinivasan, Kristie Thompson, George Pink