Hospital Closings are Increasing!

The pace of hospital closures, particularly in rural areas seems poised to accelerate.

Hospitals have been closing at the rate of 30 a year according the the American Hospital Association.

Analysts at Morgan Stanley reviewed data from about 6000 hospitals and found that 8% are at risk of closing and another 10% are considered weak.

The next 18 months should see an increase in shut downs.

There are many hospitals with high negative margins. This will become unsustainable if something is not done.

Technological improvements are allowing patients to get more surgeries and imaging done outside the hospital.

Hospitals, particularly rural hospitals are getting eaten alive by these market trends.

There are solutions but hospital management teams must be willing to change some things.