A Kentucky Hospital Association report states that up to 28 rural hospitals in the state are at risk for closure due to increased expenses from the coronavirus and decreased funds from Medicare and Medicaid.
With just 68 hospitals serving Kentucky’s rural communities, the 28 at-risk hospitals represent 41% of the hospitals serving those areas. Kentucky hospitals have lost $2.6 billion in revenue from canceled elective surgeries due to the coronavirus pandemic; federal financial aid has provided $1.3 billion in financial aid to cover some of those losses.
The hospitals lose an average of $1,200 per coronavirus patient due to limited reimbursements from Medicare and Medicaid. The hospitals have also experienced a lighter patient load due to patients avoiding hospitals during the pandemic.
Kentucky’s rural hospitals are more than half of the hospitals in the state, and they are typically the largest employers in their communities, employing 24,000 people overall. More than 3,000 hospital employees in the state have been furloughed due to the coronavirus pandemic.