Rural hospitals’ revenue would be squeezed if Medicaid expansion rolled back

Almost 700 rural hospitals have been deemed at risk of closing thanks to financial struggles. As Kaiser Health News reports, the loss of expanded Medicaid could push those facilities over the edge.

“All these rural hospitals are operating on thin margins. The removal of any income source or coverage, or expansion of bad debt, is going to create significant financial hardship,” said Alan Morgan, CEO of the National Rural Health Association.

Kaiser visited one such hospital, the 64-bed Highlands Hospital in Connellsville, Pennsylvania, which has a population of just over 7,600. Close to one-third of the county’s population has Medicaid after eligibility was expanded, but closure is still a “daily concern,” according to the hospital’s CFO, John Ardusky.

“It seems like you’re taking two steps forward, three steps back,” Ardusky said. “It’s not like I can look to five years out—because I have to worry about tomorrow. I can’t worry about next year.”

Read the full article below: 

""
John Gregory, Senior Writer

John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.

Around the web

The tirzepatide shortage that first began in 2022 has been resolved. Drug companies distributing compounded versions of the popular drug now have two to three more months to distribute their remaining supply.

The 24 members of the House Task Force on AI—12 reps from each party—have posted a 253-page report detailing their bipartisan vision for encouraging innovation while minimizing risks. 

Merck sent Hansoh Pharma, a Chinese biopharmaceutical company, an upfront payment of $112 million to license a new investigational GLP-1 receptor agonist. There could be many more payments to come if certain milestones are met.