Half of rural hospitals in the red, pressured by high Medicare Advantage enrollment
Healthcare Finance
America's rural health safety net is feeling pressured, with half of all rural hospitals in the U.S. now in the red. And according to new research from Chartis, high enrollment of rural residents in Medicare Advantage plans could make the situation worse.
The percentage of America's rural hospitals operating in the red jumped from 43% to 50% in the last 12 months, data showed. Fifty-five percent of independent rural hospitals are operating in the red, while 42% of health system-affiliated rural hospitals are operating at a loss. Nearly 60% of rural hospitals are now affiliated with a health system.
Meanwhile, Medicare Advantage now accounts for 35% of all Medicare-eligible patients in rural communities. In seven states, Medicare Advantage penetration exceeds 50%.