Marty Gordon, NRVsports@ourvalley.org
A new report from the (VJCH) finds 13 of the 36 rural hospitals operating in the Commonwealth are at risk.
Eight hospitals are considered “at risk of closure,” which means operating margins are negative or net assets are low, according to VJCH.
VJCH says five hospitals are considered at “immediate risk of closure”, which means operating margins are negative and net assets are low. Two of those are in the New River Valley.
LewisGale Pulaski and Carilion Giles Community are on the list with Pulaski facing an “at-risk of closure,” and Carilion Giles an “immediate risk of closure.”
Both parent health systems issued statements following the announcement.
LewisGale released the following statement:
“LewisGale Hospital Pulaski is aware of the recent report and has reviewed its findings. We want to reassure our patients, colleagues and community that LewisGale Hospital Pulaski is not closing. We are operationally sound, remain open and focused on caring for the patients and families who depend on us.
The report appears to rely heavily on publicly available financial data. As part of a larger health system, LewisGale Hospital Pulaski does not publicly report individual hospital financial performance in the same way some independent hospitals may. As a result, the report may not fully reflect our hospital’s position as part of a larger healthcare network.”
Meanwhile Executive Vice President and CFO of Carilion Clinic Don Halliwill released the following statement:
“Rural and safety net hospitals across the country continue to face significant financial pressures driven by multiple factors, including workforce shortages, inflation, reimbursement challenges, a declining and aging rural population, and changing care needs. It’s proof this issue isn’t unique to Virginia – it’s a national concern.
Like all nonprofit health care organizations, we’re accustomed to working with tight operating margins in caring for patients in local communities. We continually evaluate how to strengthen our services and improve efficiency, while remaining focused on our mission to provide high-quality care close to home.
We’re closely monitoring H.R. 1, and it is premature to speculate on its potential implementation impacts.”
Again, the hospitals are categorized by their level of risk for closure.
Neither Carilion Giles Community nor LewisGale Pulaski have any plans for closing.
The comprehensive Joint Commission Final Report attributes this health crisis to a combination of rising operational costs, high poverty levels, workforce shortages and federal Medicaid funding cuts.
