In the past five years, over 100 rural hospitals have stopped delivering babies, contributing to the 57% of rural U.S. hospitals that lack labor and delivery services.
Of the 978 rural hospitals that offer labor & delivery services, almost 40% lost money on patient services overall in 2022 through 2023, meaning their ability to continue delivering maternity care is at risk.
www.beckershospitalreview.com
In 2019
About 58% of hospitals lost money on Medicaid patients.
In rural areas
Most rural hospitals lose money on Medicaid patients. The losses on individual Medicaid patients are often larger than the losses on patients with private insurance.
Hospitals are paid based on diagnosis-related groups (DRG), which are fixed amounts for each hospital stay. If a hospital spends less than the DRG payment for a patient, it makes a profit. If a hospital spends more than the DRG payment, it loses money
Medicaid pays for about 42% of births in the US, but the reimbursement rate is significantly lower than the cost of providing the service. For example, the Health Care Cost Institute estimates that Medicaid pays about $6,500 for a delivery, while employer-sponsored insurance pays about $15,000
Of the 978 rural hospitals that offer labor & delivery services, almost 40% lost money on patient services overall in 2022 through 2023, meaning their ability to continue delivering maternity care is at risk.
57% of rural hospitals lack maternity care: 19 states with the biggest gaps
"Discover the shocking truth about the lack of maternity care in rural hospitals. Over 100 hospitals have stopped delivering babies, putting mothers and babies
In 2019
About 58% of hospitals lost money on Medicaid patients.
In rural areas
Most rural hospitals lose money on Medicaid patients. The losses on individual Medicaid patients are often larger than the losses on patients with private insurance.
Hospitals are paid based on diagnosis-related groups (DRG), which are fixed amounts for each hospital stay. If a hospital spends less than the DRG payment for a patient, it makes a profit. If a hospital spends more than the DRG payment, it loses money
Medicaid pays for about 42% of births in the US, but the reimbursement rate is significantly lower than the cost of providing the service. For example, the Health Care Cost Institute estimates that Medicaid pays about $6,500 for a delivery, while employer-sponsored insurance pays about $15,000
