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Recent Report: Financial Strain Hits Rural Hospitals, A Decade-High Crisis

Feb 22, 2024

Chartis report highlights Medicare Advantage's role in escalating rural health challenges

A new report by healthcare advisory services firm Chartis reveals that half of the United States' rural hospitals are operating at a financial loss, marking a decade-high and the largest single-year jump. The rising enrollment of rural residents in Medicare Advantage plans, which offer lower net reimbursement to Critical Access Hospitals, is identified as a significant factor contributing to the financial challenges, potentially leading to closures and exacerbating "rural care deserts" across the country. Chartis emphasizes the need for urgent action from policymakers to reinforce the rural health safety net and address the specific challenges posed by Medicare Advantage enrollment.

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