A new state study says rural hospitals are facing growing cutbacks and financial distress — and thirteen face such dire circumstances that they're in danger of closing.
Rural hospitals are facing significant financial challenges. Nearly 200 rural hospitals across the U.S. have closed since 2005, according to the Cecil G. Sheps Center for Health Services Research at the University of North Carolina.
And a new study by the Virginia Joint Commission on Health Care has identified 13 rural hospitals at risk of closure – including five at immediate risk of closure.
Two of them are Carilion Clinic Hospitals in Giles and Tazewell counties. And the financial situation could get worse, as rural healthcare systems brace for pending changes to Medicaid passed by Congress last year. In an emailed statement, Carilion Clinic CFO Don Halliwill said, "The state taking action to strengthen Medicaid is vital to protect access to healthcare, support local economies, and sustain rural and safety net hospitals that serve as major employers and essential community infrastructure."
Penny Blue is a former school board member and activist in Franklin County. In 2021, she suffered from a brain hemorrhage and needed to be taken to the local Carilion hospital in Rocky Mount. Carilion Franklin Memorial Hospital does not appear on the list of 13 rural hospitals, but Blue cited it as an example of the importance of small-town and rural facilities.
"If there were no Franklin Memorial Hospital, it would have taken me over an hour to get to RMH [Carilion Roanoke Memorial Hospital] for initial treatment," Blue said. "Minutes matter. Seconds matter. Rural hospitals matter."
Blue made the comments at a news conference that was also attended by Democratic Del. Rodney Willett of Henrico County.
Willett, who chairs the House Health and Human Services Committee, described a 2024 visit to southwestern Virginia hospitals operated by Ballad Health, which has two hospitals listed at risk of closure.
"They were already in the red, and basically being propped up by other sister hospitals doing better," Willett said. "So it's a dire situation, obviously being made much worse."
In a statement, a Ballad Health spokesman said Ballad said the company has ensured no community in Southwest Virginia lost access to a hospital. But he acknowledged the coming changes to Medicaid pose a new challenge writing, "In 2028, rural hospitals face material cuts. Proposed rules by the Centers for Medicare and Medicaid Services go even further than the legislation in making these cuts. Ballad Health is monitoring this situation and will advocate aggressively to preserve rural access to community hospitals."
Another hospital that appeared on the list of those at risk of closure is HCA LewisGale Hospital Pulaski.
LewisGale officials pushed back on that assessment, though, writing, "We want to reassure our patients, colleagues and community that LewisGale Hospital Pulaski is not closing. We are operationally sound, remain open and focused on caring for the patients and families who depend on us."
