Like companies in the credit and collection industry, rural hospitals have been facing a crisis and consolidation in recent years, but there might be an opportunity for collection agencies to help those facilities as that crisis is expected to worsen, according to a report that was released yesterday.
More than 20% of rural hospitals nationwide are at risk of closing, according to the report, released by Navigant Consulting. Those 430 facilities are spread across 43 states, employ 150,000 people, and bring in $21 billion in patient revenue. One of the leading causes for the problems being felt by rural hospitals is an increase in uncompensated or under-compensated care, according to the report. Residents in rural areas tend to be either very old or very young and those areas have high rates of uninsured patients, according to the report. The hospitals also tend to be so cash-strapped that they are unable to invest in new technology or systems to help them become more efficient.
Many rural facilities are designated as Critical Access Hospitals, meaning they have to provide a certain number of inpatient beds along with an emergency room. Those requirements are placing an undue strain on the finances of many hospitals, which might be able to be turned around if allowed to shed some excess capacity.
Partnering with companies that offer revenue cycle management functions also could help these rural facilities “leverage the resources and capabilities of their better-funded, savvier peers,” according to the report.
Thirty-four states have at least five hospitals that are at “high financial risk” of closing, according to the report. For companies in the credit and collection industry that specialize in healthcare collections, revenue cycle management, or offer back-office support, these facilities may represent huge opportunities to not only help the bottom line of your company, but to possibly save hospitals in communities that need them.
