Rural Hospital Closures| TORCH

Texas and much of the nation is in the grips of a rural hospital closure crisis. There are many reasons a hospital may close ranging from declining reimbursement levels, shrinking population, swelling uncompensated care, and increasing operating cost. Yet, our rural communities deserve to have good health care and hospital access. It is a crisis that needs to be fully addressed by the Texas Legislature and the Congress of the United States.

Texas leads the nation in rural hospital closures.
26 Texas rural hospital closures (permanently or temporarily) have occurred in 22 communities since the beginning of 2010. Nationally, more than 70 rural hospitals have closed in the same time frame.
Of the 26 Texas closures in the 22 communities impacted, one hospital closed three times and two hospitals closed twice. Three communities have seen their hospital reopen, 4 have an emergency room and clinic but no inpatient service, 4 have a clinic but no emergency services, and 11 have no hospital, emergency, or clinic services.
Many more Texas rural hospitals remain highly vulnerable (financial distress, bankruptcy, and on the brink of closure).
Texas had 300 rural hospitals in the 1960s and is down to 158 rural hospitals.
The upswing in Texas closures in the last decade is primarily driven by $50 million a year in Medicare cuts to Texas rural hospitals starting in 2013 (sequestration, loss of outpatient hold harmless, ACA penalties) as well as a $80+ million a year underpayment by Texas Medicaid.
The closures are taking an economic toll on Texas as a rural hospital closure – on average – costs 170 jobs and an annual payroll of $22 million.
Closures have a ripple effect in the community reducing sales tax revenue to local government, reducing school student numbers driving down state payments to the local school, and hurting local businesses across the community.
Deaths have occurred the result of closures - the most notable being an 18-month-old infant choking on a grape in Center, Texas who died on August 12, 2013 days after the hospital closed and there wasn’t enough time to get to the nearest open hospital.

Additional information on Texas rural hospital closures:

List of Texas Rural Hospital Closures Since 1965
Map of Recent Texas Rural Hospital Closures
Impact of a Rural Hospital Closure