Rural Health Fund Won’t Save Hospitals, Health Care Executives Say
The $50 billion Transformation Fund will support rural hospitals, but can't rescue them, executives argued at a Newsweek event.
Leaders from Sanford Health, InterSystems and Lumeris debated the Rural Health Transformation Fund's impact during a webinar. While the initiative injected $50 billion over five years into rural health care, panelists argued it was not designed to save hospitals. Dr. Tim Ferris of InterSystems stated that the program should be evaluated based on whether it improves access, information sharing and care delivery, rather than preventing hospital closures.
Current data shows that 40% of rural hospitals operate at a loss, 417 are vulnerable to closure, and over 200 have closed since 2010. Sanford Health's Matt Hocks emphasized that the fund allows for thinking about rural care differently, such as investing in technology and virtual care to keep patients local. Lumeris' Dr. David Carmouche broadened the discussion, stating that access, workforce, and technology are inseparable in improving health outcomes.
He highlighted the need for modernization and the potential of artificial intelligence to monitor patients remotely and extend the reach of primary care. While technology was seen as a key component, none of the speakers believed it alone could solve the financial challenges facing rural providers. The panelists agreed that the fund's success should be measured by whether patients receive higher-quality care closer to home and whether technology enables rural clinicians to serve more people effectively, rather than solely by hospital survival.
Written by urgent.news from Newsweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
