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Assessing the Impact of COVID-19 on Rural Hospitals

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From the AHA:


KEY FINDINGS

  • Approximately half (48%) of rural hospitals consistently experienced negative operating margins from patient services prior to and during the COVID-19 pandemic.

  • A small minority (12%) of rural hospitals consistently experienced positive operating margins prior to and during the COVID-19 pandemic.

  • The COVID-19 provider relief funds benefited all rural hospitals, however rural hospitals with negative total margins had the greatest benefit, with overall increases to profitability.

  • In 2021, COVID-19 provider relief funds masked long-standing financial challenges experienced by many rural hospitals.

  • System membership may provide benefits to rural hospitals in terms of supporting operations and navigating regulatory and financial challenges during the COVID-19 pandemic.

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