A record 40 rural hospitals closed permanently in 2025, leaving 12 million Americans in healthcare deserts where the nearest emergency room is more than 30 miles away.

Root Causes

Low Medicaid reimbursement rates, staff shortages, aging infrastructure, and small patient volumes create an unsustainable financial model. The average rural hospital operates at a $2 million annual loss.

Consequences

Studies show that rural hospital closures increase mortality rates by 8% in affected communities. Maternal and cardiac outcomes are disproportionately impacted by longer travel times to care.