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The fragile economies at the heart of rural hospitals

By Reuters  
   March 20, 2026

Nearly 90% of the land in the United States is rural and about one in five people, or some 60 million, live throughout it according to the U.S. Census. Data also show rural residents are older, have worse health outcomes and less healthcare access than their urban counterparts. There are about 2,000 rural hospitals available to intervene in their health emergencies and over 40% operate at a loss. Risk of closure looms, especially for hospitals in the southern half of the U.S. Rural areas also have a high reliance on Medicaid, relative to the size of their populations. Medicaid is the public program that provides insurance to more than 70 million poor children, pregnant women, seniors and people with disabilities. The July 2025 budget reconciliation bill included nearly $1 trillion in federal Medicaid cuts that, along with other measures, are projected to leave about 10 million people uninsured by 2034, according to estimates from the non-partisan CBO.

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