Hospital Finance, Advocacy Jason Douglas Hospital Finance, Advocacy Jason Douglas

While Congress Voted, Rural America Fights - The Story of One Hospital's Battle to Survive

In Washington's marble halls, senators and representatives speak passionately about rural healthcare. They cite statistics about hospital closures, describe constituents driving 100 miles to deliver babies, and secure promises to address these "critical" issues. The concern seems genuine, the rhetoric moving.

Then they vote.

The recent congressional approval of legislation that healthcare experts warn will accelerate rural hospital closures reveals a troubling truth: while politicians perform concern, real communities face extinction. The very representatives who champion rural healthcare in hearings turn around and vote for bills that push these hospitals closer to the edge.

While Congress was deliberating legislation that would make their survival even harder, the people of Anson, Texas were fighting to keep their hospital doors open. Their story, captured in the video below, shows what the political rhetoric obscures: real people making extraordinary sacrifices to save the institutions their communities depend on.

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Advocacy, Hospital Finance Jason Douglas Advocacy, Hospital Finance Jason Douglas

Senate Passes Devastating Medicaid Cuts, House Fight Looms

Vice President JD Vance cast the tie-breaking vote as the Senate passed the “One Big Beautiful Bill” (or substitute your own descriptor) 50-50 after a 27-hour marathon of voting. While the most extreme Scott amendment was ultimately defeated, the base bill’s devastating wealth transfer from healthcare to tax cuts for the wealthy now moves to the House, where the real fight begins.

In the pre-dawn hours of Tuesday morning, the U.S. Senate completed one of the most consequential votes in recent American history—not just for what it passed, but for what it revealed about who matters in American democracy. After 27 hours of marathon voting that forced senators to cancel July 4th vacation plans, Republicans achieved their goal of the largest wealth redistribution in recent memory: cutting more than $793 billion from Medicaid to fund tax cuts for the wealthy.

The vote came down to a 50-50 tie broken by Vice President Vance, with only three Republicans joining all Democrats in opposition: Susan Collins of Maine, Thom Tillis of North Carolina, and Rand Paul of Kentucky. The absence of the ultra-extreme Scott amendment—which would have completely eliminated Medicaid expansion funding starting in 2031—represents the only silver lining in an otherwise devastating outcome for American healthcare.

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Hospital Finance Jason Douglas Hospital Finance Jason Douglas

Hospital doors will be closing. Here's why you should care—and what you can do about it.

Right now, as I'm writing this, U.S. Senators are debating a bill that could determine whether your local hospital stays open. I know that sounds dramatic, but it's not hyperbole. The "One Big Beautiful Bill" that's moving through Congress includes some of the deepest cuts to hospital funding we've ever seen.

And here's the thing - this isn't about some abstract policy debate. This is about whether the hospital where you were born, where your kids might be born, where your parents go for emergency care - whether that hospital will still be there next year.

We're already seeing hospitals close at an alarming rate. In rural areas especially, about one in five hospitals are on the financial edge. Many have already cut services that communities depend on - labor and delivery units, mental health programs, even emergency departments. Once those services are gone, they almost never come back.

The problem is that hospitals lose money on every Medicaid patient they treat. The government simply doesn't reimburse the full cost of care. To make up for some of that gap, states have programs called "State Directed Payments" that help hospitals stay afloat while serving Medicaid patients. It's not perfect, but it's been a lifeline.

This Senate bill would essentially eliminate that lifeline. It caps those payments at Medicare rates, which sounds reasonable until you realize Medicare rates don't cover the actual cost of care either. Hospitals would be forced to choose: keep losing money until they close, or cut services that people need.

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Financial Performance Jason Douglas Financial Performance Jason Douglas

The State of Rural Healthcare

The state of rural healthcare in America has reached a critical tipping point, with nearly half of rural hospitals operating in the red and 432 facilities vulnerable to closure. According to the Chartis report, these stark numbers represent more than just statistics – they reflect a growing crisis in healthcare access for over 46 million Americans living in rural communities.

Since 2010, 182 rural hospitals have either closed their doors completely or converted to models that no longer provide inpatient care. This represents approximately 10% of the nation's rural hospitals, creating what healthcare experts call "care deserts" across vast stretches of rural America. The impact is particularly severe in states like Texas, which has lost 26 facilities, and Tennessee, which has seen 16 closures.

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Looming Crisis of Rural Hospital Closures - A New Model Sheds Light on Financial Distress

Rural hospitals are more than healthcare providers—they are pillars of their communities. They serve as key employers (generally one of the top three employers within the community), lifelines during emergencies, and providers of essential medical care. However, the ongoing wave of rural hospital closures threatens to dismantle these lifelines, leaving vulnerable populations without access to critical health services. From January 2005 to May 2024, a staggering 219 rural hospitals in the United States closed or converted to facilities without inpatient services. Understanding and addressing the causes of these closures is a matter of urgent concern.

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