The Impact of Hospital Closures and Layoffs on Healthcare Access

Ben H.

Hatched by Ben H.

Aug 15, 2023

4 min read


The Impact of Hospital Closures and Layoffs on Healthcare Access


In recent years, the healthcare industry has been facing significant challenges, with rural hospitals closing at an alarming rate and layoffs affecting various sectors within the industry. These developments have had a profound impact on healthcare access, especially for those living in rural communities. This article aims to explore the reasons behind the closure of rural hospitals and the implications of widespread layoffs within healthcare organizations. Additionally, we will discuss potential solutions and actionable advice to mitigate these issues and ensure adequate healthcare access for all.

The Closure of Rural Hospitals:

Between 2005 and 2019, more than 150 rural hospitals across the country had to close their doors, leaving many communities without essential healthcare services. The pandemic further exacerbated this issue, with an additional 19 rural hospitals closing in 2020, marking the highest number of closures in a decade. However, it is important to note that these closures were not directly caused by the pandemic but rather stemmed from financial losses accumulated in previous years. The closure of ten more rural hospitals in 2021 and 2022, although a smaller number than in 2019, suggests that the assistance provided during the pandemic was temporary, and the situation is likely to worsen.

Layoffs within Healthcare Organizations:

UnitedHealth Group Inc., one of the largest healthcare companies in the United States, recently announced significant layoffs across its various business lines. The layoffs were primarily attributed to rate pressure and the ending of the Public Health Emergency (PHE), which caused a decline in Medicaid membership. This news has undoubtedly caused frustration among affected employees, particularly given the company's recent mergers and acquisitions, which have sparked concerns about the prioritization of profits over employee well-being. Reports indicate that layoffs began on July 27th and are expected to continue until August 3rd, with estimates ranging from 10% to 20% job cuts across the enterprise.

The Interconnectedness of Hospital Closures and Layoffs:

While hospital closures and layoffs may seem like separate issues, they are interconnected and reflect the systemic challenges faced by the healthcare industry. Financial losses experienced by hospitals often lead to closures, creating a ripple effect that affects healthcare access in surrounding communities. Layoffs within healthcare organizations, on the other hand, not only impact employee livelihoods but also contribute to the strain on an already overwhelmed healthcare system. The closure of rural hospitals can result in increased patient loads for remaining facilities, putting additional pressure on healthcare professionals and potentially compromising the quality of care provided.

Implications for Healthcare Access:

The closure of rural hospitals and layoffs within healthcare organizations have severe implications for healthcare access, particularly for vulnerable populations. Rural communities, already grappling with limited healthcare resources, are disproportionately affected by hospital closures. The distance patients must travel to access medical services increases, leading to delays in treatment and potential health complications. Layoffs within healthcare organizations further strain the system, potentially resulting in longer wait times, reduced availability of specialized services, and overwhelmed healthcare professionals.

Potential Solutions and Actionable Advice:

  • 1. Government Intervention and Support: It is crucial for governments to recognize the vital role played by rural hospitals and provide financial assistance to prevent closures. Policy initiatives, such as increased reimbursement rates or grants, can help ensure the financial viability of these hospitals and maintain healthcare access in rural areas.
  • 2. Telehealth and Telemedicine: The integration of telehealth and telemedicine services can bridge the gap created by hospital closures and improve access to healthcare. By leveraging technology, patients in remote or underserved areas can consult with healthcare professionals without the need for extensive travel. This approach also has the potential to alleviate the strain on remaining healthcare facilities.
  • 3. Community Engagement and Advocacy: Local communities must actively engage in advocating for the preservation of their rural hospitals. Through grassroots efforts, fundraising initiatives, and partnerships with healthcare organizations, communities can rally support to keep their hospitals operational. Additionally, fostering awareness about the importance of healthcare access in rural areas can garner public and political support for long-term solutions.


The closure of rural hospitals and layoffs within healthcare organizations are pressing issues that demand immediate attention. The interconnected nature of these challenges necessitates a comprehensive approach that involves government intervention, the integration of telehealth services, and community engagement. By taking proactive measures, we can work towards preserving healthcare access for all, regardless of geographic location or financial circumstances. Ensuring the sustainability of rural hospitals and the well-being of healthcare professionals will ultimately contribute to a more equitable and resilient healthcare system.

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