Healthcare

Over a dozen Virginia rural hospitals at risk of closing, state report finds

Lawmakers are also concerned about how hospitals will be impacted by spending cuts and changes to Medicare and Medicaid.

This Aug. 25, 2018, photo shows beds and other equipment being assembled in an ICU room in the Lee County Medical Center in Pennington Gap, Va. (AP Photo/Earl Neikirk)

A state report released last week found that 13 rural hospitals in Virginia are at risk of closing.

About three or four times a month, Regina Gallimore-Szerokman takes the day off from her sales and marketing job to make a day trip from her home in Pulaski County to Roanoke or Charlottesville. 

She does so to meet with different specialists who help monitor and care for her 14-year-old twins who have seizure disorders and are hearing impaired. While their local pediatrician in Pulaski is amazing, Gallimore-Szerokman has to make hour-long drives and take time off work to get the specialized care her twins require. 

Gallimore-Szerokman said it would be better if her family and others in the community had closer healthcare options. 

โ€œWe have the means and the ability to travel, but for some families, they don’t have the capability of going somewhere in North Carolina or to UVA to see a specialist,โ€ Gallimore-Szerokman said in an interview. โ€œAnd that can be detrimental to a child’s outcome.โ€

A report published last week by the stateโ€™s Joint Commission on Health Care has raised new concerns about healthcare access in rural Virginia. 

Eight rural hospitals are โ€œat risk of closureโ€ and five others are at โ€œimmediate risk of closure,โ€ according to an analysis of each hospital’s financials, including operating margins and financial reserves.  

A separate analysis of financial distress included in the stateโ€™s report found that four rural hospitals are in the โ€œhighest risk of distressโ€ and eight others are in the โ€œmid-highest risk of distress.โ€ 

โ€œWeโ€™ve got a crisis,โ€ said State Del. Rodney Willett (D-Henrico) at a meeting Thursday in Richmond where the reportโ€™s findings were presented.ย 

The list of rural Virginia hospitals a state report found are at risk of closing. (Source: Joint Commission on Health Care)

The struggles of rural hospitals in Virginia and around the US have been an issue for years. 

Since 2005, 108 rural hospitals have closed nationwide and 139 stopped offering inpatient services, according to the state report. 

Rural hospitals struggle with lower numbers of patients, offer fewer services that could bring in more money, and have less negotiating power to get better reimbursement rates, the report said. Meanwhile, labor costs have gone up and inflation has driven up the prices of medical supplies. 

Many patients at rural hospitals are covered by Medicare and Medicaid which donโ€™t often reimburse hospitals enough money to cover the cost of care, the report said. 

โ€œYour findings thus far are quite scary,โ€ State Sen. Barbara Favola (D-Arlington) said at the presentation. 

One of the hospitals identified as โ€œat risk of closureโ€ was LewisGale Hospital Pulaski in Pulaski and is part of the HCA Virginia Health System. In a statement to Dogwood, a spokesperson for the hospital said the stateโ€™s report โ€œmay not fully reflect our hospitalโ€™s position as part of a larger healthcare network.โ€

โ€œLewisGale Hospital Pulaski is not closing,โ€ the spokesperson wrote. โ€œWe are operationally sound.โ€

Still, Del. Willett noted that all hospitals, big and small, profitable or otherwise, are bracing for the impact of the massive cuts to federal healthcare programs that were part of President Donald Trumpโ€™s One Big Beautiful Bill Act. 

โ€œThe magnitude of this risk is unprecedented,โ€ he said on Thursday. 

The legislation has already been cited as the reason a health system closed three clinics in rural Virginia last year. 

State Del. Amy Laufer (D-Crozet) said in a statement to Dogwood that โ€œimmense cuts and administrative changes in federal fundingโ€ to Medicaid and Medicare have โ€œintensified the challenges for rural healthcare and put patients in a precarious position.โ€ 

The assurances about LewisGale havenโ€™t been enough to ease community concerns about the hospitalโ€™s future, according to Hazel Wines, who runs a mutual aid nonprofit in Pulaski and is active in the community there. Thatโ€™s partly because of whatโ€™s happening on the ground in Pulaski, but also because official statements hold less weight there than they once did. 

โ€œThereโ€™s just sort of a general erosion of trust, not necessarily with the hospital, but with anyone in an official capacity, just because things have become so unsure from the federal level down,โ€ Wines said in an interview. โ€œIt seems like very often information thatโ€™s relayed from officials doesnโ€™t always reflect the reality around us.โ€  

READ MORE: Rural Virginia families like mine are crossing state lines for pediatric health care

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Amie Knowles
Amie Knowles Newsletter Editor
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  • Michael is an award-winning journalist who started covering Virginia news in 2013 with reporting stints at the Richmond Times-Dispatch, Virginia Business, and Richmond BizSense. A graduate of William & Mary and Northern Virginia Community College, he also covered financial news for S&P Global Market Intelligence.