'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 The health system reported that the outdated facility made delivering care challenging, prompting a decline in utilization over the last year.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

EV Charging Station Design: Ensuring Patient Access

The question is not whether to install charging infrastructure — the organization eventually will have to — but how to do it without disrupting patient care.


Sanford Health and Prairie Lakes Healthcare System Merge

Prairie Lakes Healthcare System will transition to the Sanford Health name and brand while preserving and expanding health services across the communities it serves.


Sedgebrook Falls Victim to Data Incident

The organization detected the event on May 5, 2025.


How Efficiency Checklists Help Hospitals Save Energy, Water and Money

Keith Edgerton explains how a simple, systematic tool can help healthcare facilities identify savings, support sustainability goals and reinvest in long-term decarbonization.


Designing with Heart: Seen Health Center Blends Cultural Warmth and Clinical Care

Case study: The Alhambra-based facility uses Wilsonart Woodgrains to create a space where comfort, tradition and durability come together for an elevated senior care 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.