When rural hospitals are “corporatized”, prices go up, the local economy suffers, and there is often a loss in access to services.

A new report from NIHCM shows that the corporatization of hospitals negatively affects patients in both cost and quality. One of the central arguments for corporatization and acquisition is that it will help rural hospitals, but this is simply not true.

In reality, according to the Paragon Institute, rural hospitals only account for 5% of total Medicaid inpatient hospital spending.

It’s actually large hospital systems—not rural facilities— that get the most of the returns. Additionally, rural hospitals do not benefit from the hospital tax. In fact, states with a hospital tax have had significantly lower hospital employment in non-metro areas than states without this tax.

Better Solutions will continue to shine a light on these misguided conceptions of rural hospitals and the real adversary at play, hospital conglomerates.