Coalition report finds integration can benefit rural hospitals, access to care
New analysis conducted by Dobson | DaVanzo released Nov. 21 by the Coalition to Strengthen America's Healthcare found that integration can provide more financial security and resources to rural hospitals, preserving patients' access to care.
“Although not necessarily the right choice for all hospitals and communities, aligning with a larger hospital system can reduce the financial vulnerability of rural hospitals as demonstrated by the proportion of rural hospitals that are no longer at high financial risk after affiliating with, merging with, or being acquired by a hospital system,” the report said.
The report found that 55% of rural hospitals that closed between 2011-2021 were standalone hospitals. Two in three hospitals at high risk of closing were no longer so when they became affiliated with a larger hospital system. The report said that 18% of hospitals affiliated with, merged with or were acquired by a larger hospital system had previously been at high risk of closure. In addition, rural hospitals saw average total margins of 1.5% prior to affiliation, compared to 2.3% post-affiliation.
The report found that integration could also help address staffing shortages, provide logistical support, standardize care protocols that improve outcomes, update technology and spur innovation that can improve quality and reduce costs.
The AHA is a founding member of the Coalition.