Kansas leads nation with 28 rural hospitals at immediate risk of closing

WICHITA, Kan. (KWCH) - Kansas has more hospitals at risk of closing than any other state in the nation, according to a new study.

The state has 100 open inpatient hospitals. Of those, the study finds 69 are at risk of closing and 28 are at immediate risk.

The study was released by the Center for Healthcare Quality and Payment Reform.

El Dorado hospital struggles

Melissa Hall, CEO of Susan B. Allen Memorial Hospital in El Dorado, said the state’s healthcare infrastructure is not designed to function without small hospitals.

“Kansas in general, is not, the infrastructure of the healthcare system is not designed to not have these small hospitals,” Hall said.

Hall said inflation, insurance hurdles and labor costs are hitting rural hospitals hard.

“Our reimbursement, which is from our major insurance payers, Medicare, Medicaid, our commercial insurances, just seem to lessen and lessen those payments,” Hall said.

Payment and designation challenges

How hospitals are designated is determined by the federal government, which affects how they are paid by Medicaid and Medicare, along with commercial insurance companies.

“The insurance companies hold so much of the power from a payment perspective and authorization perspective. We have to jump through so many hoops just to do what we’re designed and meant to do. It’s, it’s kind of crazy,” Hall said.

Hall said she has reached out to lawmakers for changes in payment rates and more flexibility in hospital designations to receive better payment rates.

She said while Medicaid expansion would help, it would not fix everything.

“Really, this is a much bigger problem. This Medicaid expansion is not going to fix the financial stability for rural health. Really, it comes down to an insurance issue. And the way hospitals are reimbursed in rural communities, it’s so hard,” Hall said.

Impact on mission

Hall said the frustrations have taken away from the hospital’s core mission.

“Most of us got into healthcare because we have a sense of giving and caring, and we really just want to make people feel better, right? And so when you hit those roadblocks like that, it’s really hard,” Hall said.

Last year Susan B. Allen covered $5.5 million in uncompensated care.

A vote on a 1-cent sales tax in El Dorado is scheduled for Aug. 4.