Report: 12 Tennessee rural hospitals at ‘immediate risk’ for closure

A dozen small, rural Tennessee hospitals are at “immediate risk” for closure, potentially exacerbating a longstanding problem in a state with one of the highest hospital closure rates in the nation. 

The calculation, by The Center for Healthcare Quality and Payment Reform, is drawn from examining multi-year hospital losses in institutions with limited assets. The center also reported that 19 rural hospitals in Tennessee are “at risk” of closing.

Tennessee ranks 6th in the number of its rural small hospitals at imminent risk, according to the report. 

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The report does not identify the hospitals. Harold Miller, president and CEO for the center, said Friday that is intentional.

“Since things can get much better or much we wouldn’t want to label and individual hospital as being at risk of closing if it has already taken (or is taking) actions that will significantly improve its circumstances, nor would we want to label a hospital as ‘not at risk’ at the same time it is trying to solve a new financial crisis,” he said. 

Miller said it was important to understand that even hospitals that remain open may eliminate key services.

Two rural hospitals in the state have closed their inpatient services, the report noted. 

He also stressed it is the smallest hospitals that face the greatest risk of closure.

Rural hospitals are at risk for closing in nearly every state, but Tennessee ranks high among closures.

The state lost 10 rural hospitals since 2015. Only Texas has seen a greater number of hospital closures in that time period: 14. 

The biggest driver of closures are losses incurred for caring for private insurance payments, the report finds. Private insurers are paying less than the real cost of services. In Tennessee, hospitals may also be impacted by future Medicaid cuts and the decision not to expand the Medicaid program to include more low-income patients.

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