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SPOTLIGHT: Hospital Consolidation is Devastating Rural Healthcare

A recent report from the Physicians Advocacy Institute (PAI) reveals that the number of independent doctors in rural areas has plummeted by 43% between 2019 and 2024. This staggering decline has resulted in 5% fewer practicing physicians and 11% fewer medical practices in these areas.

In states like Indiana, Massachusetts, New Jersey, and Ohio, over 50% of independent doctors have closed due to hospital consolidation.
The consequences of this trend are far-reaching. When corporate entities acquire medical practices, they often impose a “profit-first” approach, which can lead to the closure of underperforming practices and reduced services. This leaves rural patients without access to the care they desperately need.

“Small, independent practices have been the cornerstone of medical care for many people in rural areas,” Kelly Kenney, CEO of the PAI, said in a press release. “We’ve seen with rural hospitals that corporate acquisitions often lead to closures. We are concerned that this same profit-first approach will cause corporate owners to shutter rural practices that don’t produce high enough revenues, leaving patients without the access to care they need.”

Hospital consolidation puts profits over people and often results in rural hospital closures. Better Solutions for Healthcare will continue to shine a light on the role corporate hospital systems play in the rising cost of care.