'Underutilization' to Blame for Recent Hospital Closures

There has been an uptick of hospitals closing.

By Mackenna Moralez, Associate editor


There has been an uptick of hospital closing due to declining populations, lack of funds, and underutilization. Currently, there are over 600 rural hospitals that are at risk of closure due to financial distress, making up nearly 30 percent of all rural hospitals in the country.  

Eugene, Oregon-based PeaceHealth recently announced its comprehensive process to close its University District Hospital. The health system plans to transition certain services to other locations, while clinics will remain open to serve the community. The hospital said it will continue to provide behavioral health services until there is an alternative in the community.  

Meanwhile, Corewell Health announced it will shutter its Spectrum Health Kelsey Hospital in October. The health system reported that the outdated facility made delivering care challenging, prompting a decline in utilization over the last year.  

Nearly all the rural hospitals that are at risk of closing are in isolated rural communities. If closed, community residents would no longer be able to receive emergency or inpatient care without having to travel long distances. Meanwhile, these facilities are often the only place residents can get laboratory tests or imaging studies done. 

In every state there are hospitals at risk of closing. These include:  

  • Texas – 81 hospitals  
  • Kansas – 56 hospitals  
  • Oklahoma – 38 hospitals  
  • Mississippi – 27 hospitals  
  • Alabama – 27 hospitals  
  • New York – 27 hospitals  
  • Arkansas – 22 hospitals  
  • Iowa – 22 hospitals 
  • Tennessee – 20 hospitals  
  • Georgia – 20 hospitals  
  • Missouri – 19 hospitals  
  • Louisiana – 18 hospitals  
  • California – 17 hospitals  
  • Montana - 15 hospitals  
  • Michigan – 14 hospitals  
  • Kentucky – 14 hospitals  
  • Minnesota – 13 hospitals  
  • Washington – 13 hospitals  
  • Pennsylvania – 12 hospitals  
  • Illinois – 12 hospitals  
  • South Carolina – 11 hospitals  
  • North Dakota – 11 hospitals  
  • North Carolina – 10 hospitals  
  • West Virginia – 9 hospitals  
  • Virginia – 9 hospitals  
  • New Mexico – 9 hospitals  
  • Maine – 8 hospitals  
  • South Dakota – 8 hospitals  
  • Hawaii – 8 hospitals  
  • Indiana – 7 hospitals  
  • Vermont – 7 hospitals  
  • Colorado – 7 hospitals  
  • Florida – 6 hospitals  
  • Wisconsin – 6 hospitals  
  • Wyoming – 6 hospitals  
  • Ohio – 5 hospitals  
  • Alaska – 5 hospitals  
  • Oregon – 4 hospitals  
  • Idaho – 3 hospitals  
  • Nebraska – 3 hospitals  
  • New Hampshire – 3 hospitals  
  • Arizona – 2 hospitals  
  • Connecticut – 2 hospitals  
  • Massachusetts – 2 hospitals  
  • Utah – 2 hospitals. 

Mackenna Moralez is the associate editor of the facilities market.  



August 29, 2023


Topic Area: Maintenance and Operations


Recent Posts

Texas to Offer Grant to Aid Operations for Rural Operations

Over 80 hospitals in Texas currently face closure.


Allina Health Opens Lakeville Specialty Center

The 100,000-square-foot center includes more than 10 specialty services.


How Can BAS Help HVAC Systems Be More Efficient?

HVAC manufacturers discuss the efficiencies of pairing HVAC systems with BAS.


Lessons to Learn from the Ascension Ransomware Attack

Securing backup data, having the correct resources and sharing information are crucial to addressing ransomware attacks.


DIG Completes Two New Hackensack Meridian Hospital Projects

Their Jersey Shore and JFK Medical projects focused on enhancing the patient and staff experience.


 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.