Growth in the U.S. population and changes in its demographics over the past 40 years have led to a disparity in care access. In 1980, 740 counties were considered “metro” areas while approximately 2,400 counties were considered “nonmetro.” That balance has now shifted; as of 2020, there are more than 1,250 metro counties and fewer than 2,000 nonmetro counties.
This reduction of the rural population, combined with a challenging payer mix, is leading to economic hardship and hospital closures in rural areas. According to a recent report from Chartis, 141 rural hospitals have closed since 2010, and an additional 453 rural hospitals are vulnerable to closure today.
While the situation may appear bleak, rural hospitals now have greater access to funding opportunities because of their rural status than they would have had otherwise. Following the 2020 census, more than 1,100 communities that were previously considered “urban” were redefined as “rural.” The Federal Office of Rural Health Policy says the recent changes to rural definitions will increase eligibility for many organizations to receive federal funding.
Rural organizations can apply for grants that focus specifically on technology and security solutions rather than having to apply for an expansive grant that targets a specific disease within a patient population, such as HIV or diabetes. That’s the case for many urban organizations seeking federal funding.
Despite these grant opportunities, many rural organizations and independent or community hospitals aren’t taking advantage of the funding availability. Here’s what they need to know to change that.
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