A new report by the Southern Poverty Law Center estimates nearly 30% of Georgia’s rural hospitals are at risk of closing due to federal healthcare cuts passed in last year’s budget bill.
Policy analyst Gina Azito Thompson says the findings are alarming.
“Many of these hospitals, especially in the deep south and in Georgia are already vulnerable,” Thompson said. “The rural healthcare infrastructure is in danger just as it is because of severe negative patient profit margins.”
The report estimates an additional 99 rural hospitals across the South are at risk of closing, including hospitals in Georgia.
Thompson says many rural hospitals are already operating on slim profit margins, and conditions have worsened with federal healthcare cuts.
“There’s kind of this storm going on, it’s brewing, with people being unable to afford health insurance through the marketplace and tax credits, and then also because Georgia has not extended Medicaid,” Thompson said.
She also pointed to the expiration of the Enhanced Premium Tax Credit as another factor impacting affordability.
“There’s kind of a new contestant that’s entered the show if you will, which has been the expiration of the Enhanced Premium Tax Credit; so even more people are now unable to afford their health insurance,” Thompson said.
According to the report, residents in many rural areas are less likely to be able to afford medical expenses, while hospitals in those communities continue to struggle financially.
Thompson says rising healthcare costs and hospital closures could lead people to forgo necessary visits to the doctor, potentially causing treatable conditions to become more serious.
“We may very well see many more rural hospital closures in the deep south,” Thompson said.
She says in areas already dealing with chronic illnesses like diabetes and high blood pressure, losing access to healthcare could have deadly consequences.
Data from the USDA shows about 150 rural hospitals across the country either closed or stopped providing inpatient care between 2005 and 2023, the most recent data available.
The data also shows a significant spike in closures in the years leading up to the COVID-19 pandemic and in the years following it.
The last major hospital closure in metro Atlanta came in 2022 when Wellstar Health System shut down Atlanta Medical Center. Wellstar cited financial struggles at the time of the closure.
