New Research from iVantage Health Analytics Confirms the Economic Impact
of Policy Changes on Rural Health Care in the U.S.


PORTLAND, MAINE and WASHINGTON, DC (June 15, 2015) – As walkers complete their 283-mile journey to Capitol Hill to raise awareness of the 283 rural hospitals vulnerable to closure, iVantage Health Analytics released new findings which further amplify the impact of sequestration and reduced bad debt reimbursement on rural hospitals across America. Between 2012 and 2015, critical access hospitals (CAHs) have seen a reduction in their reimbursable bad debt from 100 percent to 65 percent. Rural PPS facilities have seen their reimbursements decline from 70 percent to 65 percent.

Among rural hospitals, we estimate the impact of sequestration and bad debt cuts could result in:

  • $3.8 billion in lost revenue over a 10-year period
  • 5,000 healthcare jobs lost, sustained over 10 years
  • 6,600 community jobs lost, sustained over 10 years
  • $13.6 billion impact on GDP over a 10-year period

“Taken together, sequestration and bad debt have had a disproportionately large impact on the bottom line of rural hospitals. iVantage has modeled the impact for each facility based upon their most recently filed cost report in our Hospital Strength INDEX™. The results are staggering,” said Michael Topchik, senior vice president at the analytics and advisory company.

“The National Rural Health Association has led the fight to stop rural hospital closures across the nation,” says Alan Morgan, CEO of the nonprofit organization. “We’re calling on Congress to pass comprehensive legislation to save rural hospitals and patients and to provide a pathway to the future for rural health.”

To see the infographic depicting the vulnerability of rural hospitals and the impact of their potential closure on the local and national economy, visit the iVantage resources page on the company website.

About iVantage Health Analytics

iVantage is a leading advisory and business analytic services company applying Accelerated Healthcare Transformation™ and the VantagePoints™ platform to drive sustained, evidence-based results. The company’s unique combination of technology, content, and expert advisory services accelerates decision making for the new health care.