Shands Lake Shore Regional Medical Center in Lake City, Florida, closed its doors on Aug. 31, becoming the latest in a long line of rural hospitals to fail under the pressures of pricing changes made by Congress and the coronavirus.
Shands is the 15th rural hospital to close in 2020. At that rate, 23 to 24 rural hospitals will close this year, eclipsing the record of 18 set in 2019.
Shands had struggled with a declining volume of patients and had to borrow money to remain open. The financial difficulties proved too great, and the hospital announced it was closing by July.
The hospital’s interim CEO Jack Montois commended the employees, saying, “Their compassionate professionalism is appreciated, and I extend a sincere thank you to them for their years of service.”
The shutdown of Shands follows the Aug. 7 closure of Cumberland River Hospital, a rural hospital in Celina, Tennessee.
Rural hospitals have struggled for years. There are about 1,800 rural hospitals in the United States, but since 2005, 174 have closed. The closures are related to changes in Medicare and Medicaid payments made in the early 1980s and later under “Obamacare” that put additional financial pressures on rural hospitals.
The coronavirus pandemic has only worsened the problem, as lockdowns resulted in the suspension of elective procedures performed in hospitals. According to the Chartis Center for Rural Health, 79% of rural hospital revenues come from outpatient elective procedures.
