New rural hospital model a lifeline for some, a gamble for others

Commencing this month, the Biden administration is introducing a unique financial solution for struggling rural hospitals. However, there's a catch: facilities opting in must agree to cease their non-emergency inpatient services. By transitioning into "rural emergency hospitals," these facilities gain access to increased Medicare payments and subsidies amounting to over $3 million annually. Nevertheless, patients are typically required to be discharged within 24 hours, necessitating their transfer to a full-service hospital, potentially in another state. The rationale behind this initiative is that numerous small hospitals operate with such low patient volumes that inpatient services consistently generate financial losses. Critics argue that the program's premise, assuming that eliminating inpatient services will resolve most issues, is flawed.