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Rural Health Fund Won’t Save Hospitals, Health Care Executives Say

Rural Health Fund Won’t Save Hospitals, Health Care Executives Say

Summary

Experts discussed the $50 billion Rural Health Transformation Fund (RHTF), saying it is not designed to stop all rural hospital closures. Instead, the fund aims to improve health care access, technology, and care delivery in rural areas despite ongoing financial challenges.

Key Facts

  • The RHTF will provide $50 billion over five years to help transform rural health care.
  • Many rural hospitals lose money because Medicare and Medicaid pay less than the cost of care.
  • More than 40% of rural hospitals are losing money, 417 are vulnerable to closing, and over 200 have closed or stopped inpatient services since 2010.
  • The fund aims to improve access to care, information sharing, and support for rural health workers, not just keep hospitals open.
  • Sanford Health is using the funding to invest in technology so patients can get care locally instead of traveling far.
  • Virtual care and new technology can help rural clinics provide better care and support staff.
  • Experts compared this effort to the HITECH Act, which helped spread electronic health records across the U.S.
  • Improving infrastructure and using digital tools are key goals to help rural health care improve quality and availability.
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