The Critical Role of Financial Sustainability in Preserving Healthcare

Rural hospitals are the backbone of many communities across the United States, providing critical access to healthcare in areas where resources are often scarce. Yet, an alarming number of these facilities are facing a precarious financial future. According to recent analysis by the Center for Healthcare Quality and Payment Reform, more than 700 rural hospitals are at risk of closure, with 364 in immediate danger of shutting down within the next two to three years.

This potential wave of closures is not just a rural issue—it is a healthcare crisis. Without intervention, millions of Americans could lose access to essential medical services, from emergency care to routine procedures. The ripple effects would impact not only patients but also local economies, jobs, and the overall resilience of the U.S. healthcare system.

The Financial Strain on Rural Hospitals

The challenges facing rural hospitals are multifaceted. Declining patient volumes, higher percentages of uninsured or underinsured patients, and inadequate reimbursement rates from payors have left many facilities unable to cover their operating costs. For some, financial reserves can only sustain operations for a few short years.

The No Surprises Act (NSA), which protects patients from surprise medical bills, adds an additional layer of complexity for healthcare providers, especially those who operate out-of-network. While the NSA aims to improve transparency and reduce patient costs, it has introduced significant challenges for providers in securing fair reimbursement for services rendered.

State-by-State Breakdown of Hospitals at Risk

The financial challenges facing rural hospitals are widespread. Below is a state-by-state breakdown of the number of rural hospitals at risk of closure over the next six to seven years:

• Alabama: 27 hospitals (53%)
• Alaska: 2 hospitals (12%)
• Arizona: 2 hospitals (7%)
• Arkansas: 25 hospitals (54%)
• California: 23 hospitals (40%)
• Colorado: 11 hospitals (26%)
• Connecticut: 2 hospitals (67%)
• Delaware: 0 hospitals (0%)
• Florida: 8 hospitals (36%)
• Georgia: 22 hospitals (32%)
• Hawaii: 8 hospitals (62%)
• Idaho: 7 hospitals (24%)
• Illinois: 10 hospitals (14%)
• Indiana: 5 hospitals (9%)
• Iowa: 28 hospitals (30%)
• Kansas: 62 hospitals (63%)
• Kentucky: 14 hospitals (20%)
• Louisiana: 24 hospitals (44%)
• Maine: 10 hospitals (40%)
• Maryland: 0 hospitals (0%)
• Massachusetts: 2 hospitals (33%)
• Michigan: 15 hospitals (23%)
• Minnesota: 19 hospitals (20%)
• Mississippi: 34 hospitals (52%)
• Missouri: 22 hospitals (38%)
• Montana: 14 hospitals (25%)
• Nebraska: 4 hospitals (6%)
• Nevada: 5 hospitals (36%)
• New Hampshire: 2 hospitals (12%)
• New Jersey: 0 hospitals (0%)
• New Mexico: 7 hospitals (26%)
• New York: 29 hospitals (56%)
• North Carolina: 6 hospitals (11%)
• North Dakota: 13 hospitals (33%)
• Ohio: 5 hospitals (7%)
• Oklahoma: 39 hospitals (51%)
• Oregon: 8 hospitals (24%)
• Pennsylvania: 13 hospitals (30%)
• Rhode Island: 0 hospitals (0%)
• South Carolina: 9 hospitals (38%)
• South Dakota: 9 hospitals (18%)
• Tennessee: 19 hospitals (36%)
• Texas: 82 hospitals (51%)
• Utah: 0 hospitals (0%)
• Vermont: 8 hospitals (62%)
• Virginia: 9 hospitals (30%)
• Washington: 17 hospitals (38%)
• West Virginia: 12 hospitals (38%)
• Wisconsin: 7 hospitals (9%)
• Wyoming: 6 hospitals (23%)

HaloMD’s Role in Financial Sustainability

This is where HaloMD steps in. As specialists in Independent Dispute Resolution (IDR) through the No Surprises Act, we work exclusively to help out-of-network providers achieve optimal reimbursement. By leveraging advanced technology, data analytics, and deep expertise, we navigate the complexities of the IDR process to secure financial outcomes that providers are owed—often at rates significantly above the Qualifying Payment Amount (QPA).

Our work directly impacts the financial sustainability of healthcare providers, ensuring they can continue delivering care to their communities. This financial stability cascades to the institutions they serve, helping rural hospitals remain operational and resilient.

Why Financial Sustainability Matters

At its core, financial sustainability is not just about balancing budgets—it’s about ensuring that healthcare providers can focus on what they do best: caring for patients. Without adequate reimbursement, providers are forced to make impossible choices, such as cutting services, laying off staff, or, in the worst-case scenario, closing their doors entirely.

The stakes are particularly high for rural hospitals, which often serve as the only healthcare option for miles. When these hospitals close, patients face longer travel times, delayed care, and poorer health outcomes. Maintaining the financial viability of rural healthcare is essential to preserving equitable access to care across the nation.

A Call to Action

HaloMD is committed to being a part of the solution. By helping providers achieve fair reimbursement through the IDR process, we are empowering them to sustain operations, reinvest in their practices, and continue serving their communities.

The numbers are stark, but the future doesn’t have to be bleak. With strategic interventions like those enabled by the No Surprises Act, we can help rural healthcare facilities remain pillars of their communities. Together, we can build a stronger, more sustainable healthcare system for everyone.

Learn more about how HaloMD supports financial sustainability in healthcare: [insert link].

HaloMD specializes in Independent Dispute Resolution through the No Surprises Act, helping out-of-network providers achieve financial predictability and optimal reimbursement. Contact us to learn more about our services.