Hundreds of hospitals in rural areas are at risk of closing under proposed Medicaid and Medicare cuts, according to data from the Cecil G. Sheps Center at the University of North Carolina at Chapel Hill.
The data was compiled upon request from Senate Democrats who outlined the impacts of potential rural health care closures in a letter to Republicans behind the "One Big Beautiful Bill Act."
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The research noted that 338 rural hospitals nationwide were at risk of closing.
According to researchers, hospitals that made the list met one or both of the following financial criteria:
- The hospital is in the top 10% Medicaid payer mix of rural hospitals across the country
- The hospital has experienced three consecutive years of negative total margin.
All but four states were impacted: Maryland, New Jersey, Rhode Island and Vermont, according to the data.
Five hospitals in North Carolina made the list, including Person Memorial in Roxboro and UNC Health Chatham in Siler City.
Hospital officials from both health care systems on Monday told WRAL News the data presented doesn’t paint an accurate picture of their specific facilities, due to involvement with larger hospital systems.
A statement from Person Memorial Hospital, a Duke LifePoint Healthcare facility, read as follows:
"Medicaid is a safety net for many patients we serve at Person Memorial Hospital and ensures our community’s most vulnerable – including children, pregnant women, seniors in nursing homes and individuals with disabilities - have access to critical health care services. While it is true that Medicaid funding cuts would disproportionately affect patients and healthcare providers in rural communities like ours, it is premature to speculate or discuss any impact on our hospital or its services. We are stable and fortunate to be part of a larger organization that provides significant resources and support so we can continue to grow and invest in our hospital, services and community. We take our role as an advocate for our patients very seriously and continue to be in close contact with key officials about the importance of maintaining Medicaid funding and protecting our community’s access to care."
A spokesperson with UNC Health further told WRAL News, “UNC Health Chatham is not in danger of closing.”
The statement continued:
"UNC Health remains committed to
ensuring all our hospitals across the state remain open and continue providing
important care for patients.
That report was written without
consultation from UNC Health leadership or the ability to review and comment on
the disposition of the UNC Health hospitals named in the report.
It is true that the magnitude of
federal cuts to various health programs, including the Medicaid program, could
have an adverse impact on hospitals, especially rural hospitals, across the
country. However, those owned by large health systems are much better protected
against the risk of closure."
Rural hospitals at risk of closing can potentially keep their emergency rooms and provide limited inpatient care by being designated a Rural Emergency Hospital (REH).
The designation was established by Congress in 2020, with the first hospital receiving a REH designation in 2023.
The model has been used more than 30 times nationwide, according to UNC Sheps Center research.
North Carolina currently does not have a REH.
WRAL investigated the efforts underway to potentially reopen Martin General Hospital in Martin County as a REH in 2024.
County officials at the time told WRAL it would be a first for the country, as no hospital has ever closed entirely before reopening as a REH.
Martin General Hospital abruptly closed in August 2023 after Quorum Healthcare filed for bankruptcy and closed the facility.
It has since remained fenced off as residents told WRAL News they are hopeful another health care system will step in to reopen the emergency department.