Community and rural healthcare facilities struggle financially due to various issues, including disruptions in supplemental funding, lower reimbursement rates, tight margins, costly prescription drug and other medical supply costs, staffing shortages, outdated technology, inflation and other challenges.
However, rural healthcare leaders can implement strategies that enhance sustainability and improve services in their communities.
Strategic Partnerships and Regional Collaborations
Resource-challenged rural hospitals can offset some of their costs by establishing relationships with neighboring hospitals, regional health systems and business partners. One notable example is Montrose Regional Health, a 75-bed community hospital in Montrose, Colo., that is building a referral network with other hospitals in its seven-county service area. The hospital created this network after outmigration data indicated residents were leaving the area for services that MRH provides.
Today, MRH is experiencing an increase in patients from smaller nearby communities and critical-access hospitals. The hospital’s surgery volume rose by 32% in 2022, and 54% in 2023. This growth has contributed to the hospital earning a prestigious spot on U.S. News & World Report’s “2024-25 Best Hospitals” list.
Another example is Southwest Health System in Cortez, Colo., which has built strong relationships with vendors and other stakeholders to create a more sustainable future. Collaborating closely with banks and bondholders allowed the hospital to secure favorable bond covenant terms, improving its financial position.
Moreover, some rural hospitals have expanded outpatient services by partnering with other providers offering specialized medical care such as wound care and pain management.
Technological Innovation
Modernizing and innovating is critical to enabling rural healthcare facilities to care for patients who might otherwise seek services at larger healthcare organizations or face difficulties in accessing treatment.
A key advancement is the rise of mobile health technologies that allow rural patients to access care from far-flung medical staff quickly and conveniently. The rapid emergence of AI and other cutting-edge technologies will further empower rural providers to deliver quality and cost-efficient care to patients.
For example, ambient generative AI listens to and then transforms doctor-patient conversations into detailed documentation, streamlining clinical workflow. Initially tested and rolling out at rural hospitals including Freestone Medical Center in Fairfield, Texas, and Huntsville (Texas) Memorial Hospital, this CarePilot technology is improving documentation accuracy, timeliness and medical coding, which allows more meaningful time between providers and patients.
Hospital-at-Home Services
This innovative concept, developed in 1995 by John Hopkins University School of Medicine, has gained momentum across urban areas and is steadily being adopted by rural hospitals. The hospital-at-home model aims to remove barriers to accessing regular care, improve patients’ health outcomes and satisfaction, and provide a sustainable approach for rural healthcare providers.
Research indicates that hospital-at-home programs can lower costs in the long term by decreasing overhead, readmission rates and other significant cost drivers. Data from the Centers for Medicare & Medicaid Services also revealed that patients receiving hospital-level care at home had a lower mortality rate and fewer complications compared with those with similar acute conditions in hospitals.
However, implementing a hospital-at-home program does require hospitals to invest significantly in technology, staffing and workflow systems to provide quality care for their service area. Some provider organizations are partnering with technology and services companies to help reduce complexities and costs.
Advanced AI technology and other innovations are essential for the sustainability of tomorrow’s healthcare. Strategically driven programs improving patient care, building high-valued partnerships and integrating new technologies into operations will position rural hospitals to better serve their communities and thrive.
Jim Kendrick, FACHE, is president/CEO, Community Hospital Corporation.