Many hospitals are now in severe financial difficulty, particularly smaller ones (see: Some Hospitals Experiencing Financial Distress and Even Bankruptcy). A recent blog note by Robert Pearl posted on the KevinMD blog discussed the financial challenges being experienced by small hospitals and one way to provide higher quality care to patients admitted to small, rural hospitals (see: Why rural hospitals are fighting a losing battle). Below is an excerpt from it:
Over the past five years, more than 40 rural facilities have closed their doors due to lack of funding. And because the majority of their funds come fromMedicare and Medicaid...,many rural hospitals may be fighting a losing battle. Understandably, small-town residents fear hospital closures or downsizing may leave them vulnerable when serious illness strikes. But the reality is patients in rural communities often don’t receive optimal care from their local hospitals. In fact, critical access hospitals in rural areas experienced increased death rates from 2002 to 2010 while mortality rates fell in other hospitals.....Fundamental to [the] Hill-Burton [Act] was the belief that residents of rural and low-population areas were best served by local community hospitals, no matter how small....[A]dvancements in medical practice further exploit the differences between America’s leading hospitals and the kind of care available to many of the 60 million people living in rural areas. The truth is many hospitals serving low-population areas don’t have the patient volume or specialists to manage the breadth of complex medical conditions they encounter today....What if rural facilities were used for the kind of routine care and simple procedures that generalist physicians and nurses can safely provide while designating regional hospitals for more complex, specialty care? With today’s video technology, a remote specialist can immediately evaluate a patient and initiate care prior to transport, minimizing delays in treatment. After preliminary testing and stabilization, patients could be safely transported to an operating room in a regional hospital for treatment mere minutes after arrival....But overall, more patients will die in sub-optimal hospitals than during transport to state-of-the-art facilities with the best doctors and nurses.If our goal is to save more lives, we as a country should invest in 21st century technology, communication, and transportation....
Small hospitals are not going to disappear because they are the major employers in many smaller towns. Perhaps Congress will come up with some new subsidy programs to offset the decreased reimbursement from Medicare and Medicaid. However, I am generally in agreement with the arguments made by Pearl. For patients with complex problems, it stands to reason that the care delivered in small rural hospitals will often not be equivalent to that delivered in regional referral centers with medical specialists on their staffs. The question here then reduces to what is the best way to ameliorate this problem without undercutting the mission of the smaller hospitals. I agree with the above statement by Pearl: After preliminary testing and stabilization, patients could be safely transported to an operating room in a regional hospital for treatment mere minutes after arrival. I also agree with the idea of creating telemedicine links between smaller hospitals and regional centers to assist the admitting physicians, when necessary, in the initial diagnosis of patients and their stabilization. Perhaps federal programs are necessary to deploy the necessary technology for telemedicine in small hospitals and put financial incentives in place to so that the regional centers are willing to participate eagerly in such relationships. However, It's not clear to me how the healthcare scenario outlined by Pearl will protect the small rural hospitals from impending bankruptcy.