Monday, February 17, 2014

Rural Hospitals Closing/Being Bought Out

Since the start of the Affordable Care Act, also known as "Obamacare" several states has refused to expand both Medicaid and Medicare due to the fear that it will cost their state's more money in the long run. So in many states this decision is hurting rural hospitals or small hospitals and forcing them to close due to a poor financial future or they are being consolidated with larger hospitals to remain open. Several larger hospitals also see this as an opportunity to cut back services at the hospitals they consolidated with or they just leave parts of it open. Some have even opened smaller clinics in these areas to help the sick.

So why are these hospitals closing. It is due to the impact of Obamacare and the lack of support from state leaders to do an expansion of Medicare and Medicaid. Some states mainly do not want to do an expansion of Medicare. They fear that it will hurt their budgets in the long run, but they are not seeing who they are really hurting the elderly and those that have to go out of town to seek some form of Medical Procedure. Where I live the small hospital that is currently consolidated with a bigger hospital makes patients drive 62 miles to have a bigger procedure done. When my dad had a heart attack they flew him via helicopter to the bigger hospital. Other bigger hospitals have put in little clinics or a profession office in my area so people will not have to drive 40 miles or further. A friend of mine lives in a smaller area and if they need a hospital has to go at least 40 miles or further to see a hospital because their town's hospital completely shut down.

The loss of many hospitals is a combination of the failing economy and financial strain caused by uninsured patients and increased number of Medicaid patients.Providers that accept Medicaid patients receive roughly 20% less than Medicare pays for the same services and Medicare pays about 15% less than private insurance carriers. With more patients relying on Medicaid doctors and hospitals feel the squeeze and have to take action. Hospitals that accept any kind of federal funds cannot refuse Medicaid patients but doctors and other medical providers are not obligated to treat Medicaid patients.

A part of the financial crisis is due to the loss of indigent care funds under Obamacare. Those patients were supposed to be covered under Medicaid expansion but Georgia, like most other states, do not have the money to pay their share of the cost of Medicaid.

The bottom line is more and more people are going to be losing their jobs. Communities are going to be nonexistent due to people moving for jobs and access to health care. Mortality rates are going to increase due to lack of healthcare.

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