Increasing number of Texas hospitals at risk of closure, report finds

While the coronavirus pandemic typically feels prefer it’s within the rearview mirror, Texas hospitals are nonetheless grappling with its aftermath.

Driving the news: Nearly twice as many Texas hospitals, or virtually 1 in 10, are at risk of closure since earlier than the pandemic, a new report from the Texas Hospital Association reveals.

• The report, ready for the affiliation by marketing consultant KaufmanHall, says hospital income is now not overlaying the fee of affected person care.
• Expenses have elevated, the size of keep has risen and sufferers are sicker than pre-pandemic ranges as a result of of delayed care.

What’s taking place: Hospital income is now not overlaying the fee of affected person care, in accordance with the affiliation’s report.

• Expenses have elevated, size of keep has risen and sufferers are sicker than pre-pandemic ranges as a result of of delayed care.
• In Texas, 26% of rural hospitals are at risk of closing, in comparison with a 5% risk for city services, the report discovered.
• Meanwhile, Texas hospital working margins stay underneath intense stress and — with further assist from the federal CARES Act is about to run out — the affiliation discovered that almost half of the state’s hospitals are reporting adverse working margins in 2022.

Of observe: The report would not specify which hospitals are at risk of closure.

What they’re saying: Texas Hospital Association CEO John Hawkins stated bigger hospitals in city areas will be capable of face up to these challenges, however it’s doable that monetary constraints can shut service strains and pediatric house in city areas.

• “That financial strain I think ultimately does impact patient care,” Hawkins instructed reporters Wednesday. “These operating challenges going forward are going to continue to be real for rural hospitals.”

Flashback: More than 500,000 sufferers have been admitted to Texas hospitals throughout the pandemic, pushing sources to the brink and resulting in widespread burnout amongst hospital workers.

• In Austin, COVID circumstances overwhelmed hospital workers and out there intensive care beds.

• Roughly 500,000 nurses are anticipated to depart the workforce this yr, bringing the general scarcity to 1.1 million nurses, in accordance with the affiliation.
• In 2020, when hospitals halted non-lifesaving medical care as COVID unfold, many rural hospitals may now not generate income by means of most cancers care or preventative procedures.

Meanwhile, rural Texans are moving to extra populous areas of the state, which has impacted impartial services.

• But hospitals which can be half of bigger methods or situated in oil and gasoline counties are much less at risk for closure, Hawkins added.
• “If you’re in an area like West Texas … you’re going to have a little bit more of a challenge,” he stated. “But that doesn’t necessarily mean the community doesn’t need that hospital.”

The backside line: Hospital bills have far outpaced income with no reduction in sight, and the steadiness of the state’s well being care security internet stays “severely threatened,” the report discovered.