According to the Center for Healthcare Quality and Payment Reform’s (CHQPR) recent analysis, more than 700 rural hospitals – one-third of all rural hospitals in the country – are at risk of closing due to serious financial problems. Nearly 300 of those rural hospitals are on the brink of closure due to their severe financial difficulties.

The report revealed that more than 40 percent of rural hospitals nationwide are losing money when providing patient care. Healthcare delivery in small rural communities is more expensive than in urban areas, and many health insurance plans do not reimburse these higher costs.

CHQPR noted that the special federal aid many hospitals received during the pandemic has concluded. Consequently, nearly one-third of rural hospitals experienced overall losses in 2024-25.

The hospitals at greatest risk of closing have more debt than assets or lack adequate net assets, CHQPR explained.

Most hospitals at risk are located in remote rural communities, where closing a facility would require residents to travel long distances for emergency or inpatient services. Often, these hospitals are the only providers of laboratory tests, imaging, and sometimes primary care, so their closure would significantly reduce access to healthcare.

Additionally, the report detailed that closing rural hospitals can affect the broader economy, including food supply and energy production, since farms, ranches, mines, drilling operations, wind farms, and solar plants are primarily located in rural areas. Without accessible healthcare, these facilities may struggle to attract and keep essential workers, jeopardizing local industries and infrastructure.