Study IDs rural Miss. hospitals most at risk of closure

A joint study by university academics and health care and policy professionals identifies nine rural Mississippi hospitals that are at-risk of closure.

“The Economic Impact of Potential Closures of Rural Hospitals in Mississippi,” just released, was conducted by the Center for Mississippi Health Policy, Mississippi State University’s Social Science Research Center, the University of Memphis’ Sparks Bureau of Business and Economic Research and that school’s Methodist Le Bonheur Center for Healthcare Economics.

It says hospitals in Covington, Holmes, Tippah, Attala, Adams, Noxubee, Tallahatchie, Pearl River and Copiah counties carry the risk for closure.

To arrive at their findings, researchers focused on three financial indicators: profitability, uncompensated care and Medicaid shortfalls. Based on those measures, five broad risk groups were established. To go with the nine most in danger of closure, 22 more were considered generally at risk. Of those 31 hospitals, 20 were considered rural.

“Rural hospitals across the nation are facing a crisis due to ever-changing economic, policy, and population factors,” the report says.

Mississippi has a total of 41 rural hospitals, 19 of which were designated as critical access facilities. That status requires certain geographical criteria – like a location more than 35 miles away from another hospital – be met. Certain services, like a 24-hour emergency room, have to be available, too.

The nine hospitals the study identified as having the highest risk got to that point for several reasons, it said. Among them: the national recession that hit in 2008, population loss in rural areas, a reduction in disproportionate share payments under the Affordable Care Act that were not replaced when the state did not expand Medicaid, rising cost of providing care, small size and lack of capital.

Four of the hospitals were listed in a 2014 rural hospital assessment by State Auditor Stacey Pickering as being those whose finances were of the most concern. Those are Natchez Regional Medical Center, Tallahatchie County General Hospital, Tippah County General Hospital and Montfort Jones Memorial Hospital in Kosciusko.

To improve, the study offers a list of recommendation that include creation of freestanding emergency departments, integration of existing services, using hybrid delivery models that focus on preventive outpatient care and bolster primary care networks and the expansion of telehealth opportunities.

“The findings suggest that although rural hospitals in Mississippi face a host of challenges, there is also ample opportunity for hospitals to leverage a broad base of federal and state initiatives and self-help actions that ensure rural communities can meet the health needs of their local populations,” the study says.

Contact Clay Chandler at (601) 961-7264 or cchandler@gannett.com. Follow @claychand on Twitter.

Identified hospitals

Covington County Hospital, Collins

Highland Community Hospital, Picayune

Holmes County Hospital & Clinics, Lexington

Tippah County Hospital, Ripley

Hardy Wilson Memorial Hospital, Hazlehurst

Montfort Jones Memorial Hospital, Kosciusko

Natchez Regional Medical Center, Natchez

Noxubee County General Hospital, Macon

Tallahatchie County General Hospital, Charleston