63% of rural hospitals in Kansas at risk of closing

KANSAS (KSNT) - Kansas has seen eight hospitals close since 2015. Now more than 90 hospitals in the Sunflower State are at risk or immediate risk of closing.

The Center for Healthcare Quality and Payment Reform (CHQPR) keeps track of rural hospitals that are at risk of closing. Last year, the organization found 600 rural hospitals were at risk of closing. This year, CHQPR is reporting 703 hospitals at risk across the nation. Kansas makes up 8% of the nation's at-risk rural hospitals and 8% of those at immediate risk.

CHQPR cited losses in patient services, insufficient revenue and low financial reserves as factors contributing to hospital closures.

"Many hospitals have managed to remain open despite losses on patient services because they receive local tax revenues or state government grants. However, there is no guarantee that these funds will continue to be available in the future or that they will be sufficient to cover higher costs," CHQPR wrote in the report.

Last year, 27 News looked into rural hospital closings and found 58% were at risk of closing. Kansas has had eight rural hospital closures since 2015 and currently has 98 rural hospitals, down from 104 last year.

In total, 84% of rural hospitals in Kansas are operating at a median loss with 84 hospitals impacted. There are 62 rural hospitals at risk of closing in Kansas with 63% of hospitals impacted, a 5% increase since last year. There are 31 hospitals at immediate risk of closure impacting 32% of rural hospitals in Kansas, according to the report. Since last year, three additional hospitals were added to the list of those at immediate risk.

In 2023, Governor Laura Kelly cited the rural hospital closures as part of her efforts to expand Medicaid:

"Already, too many rural hospitals have shut their doors. When that happens, the communities have been devastated. These Kansans have to drive hours now to receive their basic care. There is an obvious way to stop the bleeding: Expand Medicaid."

Governor Laura Kelly

Last year the HQPR report said increasing payments to prevent closures of at-risk rural hospitals would cost about $4 billion per year and represent only a 1/10 or 1% increase in national healthcare spending.

The report said spending would likely increase if more hospitals closed because care would cause residents in rural communities to be sicker and need more future services.

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