12 Tennessee Rural Hospitals Face Immediate Closure Risk, Report Finds
A Center for Healthcare Quality and Payment Reform report identifies 12 Tennessee rural hospitals at immediate risk of closure due to multi-year losses and limited assets, with 19 additional facilities also at risk. Tennessee ranks 6th nationally for rural hospitals facing imminent closure and has lost 10 rural hospitals since 2015, second only to Texas. The report attributes closures primarily to private insurance reimbursement below cost of care, with Tennessee hospitals also facing potential future Medicaid cuts and the state's decision not to expand Medicaid eligibility. The report does not name specific hospitals but warns that even hospitals remaining open may eliminate essential services.
Tennessee Medicaid MCOs and the state agency face potential network adequacy challenges and higher costs if rural hospital closures concentrate care in fewer facilities and require additional transportation or telehealth infrastructure for beneficiaries in affected areas.
Managed Care · Finance
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