24 rural hospitals have closed in Medicaid expansion states

Kaitlyn Finley

On June 30, Oklahoma will vote on State Question 802 which would amend the state constitution and add a provision to expand Oklahoma’s Medicaid program to include able-bodied adults.

Supporters of State Questions 802 claim Oklahoma must expand Medicaid in order to protect rural hospitals from closure. They contend increasing the amount of Medicaid members in local communities will secure more government dollars for the local hospital.

But as Jay Johnson, CEO of Duncan Regional Hospital recently noted in a legislative hearing, hospitals lose money on each Medicaid patient they treat. Any business owner knows that focusing on securing a larger client base of money-losing customers is not sustainable long term.

This is a major reason why dozens of rural hospitals are still closing in expansion states years after the state implemented expansion, as shown by the list below (compiled from Becker’s Hospital Review).

Alaska:

Sitka Community Hospital (July 2019)

Arizona:

Cochise Regional Hospital (July 2015)

Arkansas:

DeQueen Medical Center (May 2019)

California:

Feather River Hospital (February 2019)
Coalinga Regional Medical Center (June 2018)
Colusa Regional Medical Center (May 2016)

Illinois:

St. Mary's Hospital (Jan 2016)

Indiana:

Fayette Regional Health (May 2019)