Behind the string of rural hospital closures

Since 2010, 107 rural hospitals have shut their doors, and many are eager to point the finger at a flawed drug savings program. But healthcare advocacy and public policy groups say it isn’t that simple.

The 340B drug savings program, signed into law in 1992, is a safety net to stretch limited resources for rural hospitals that care for Medicaid enrollees and those who are unable to pay for coverage. It offers discounts on expensive outpatient drugs, allowing the savings to be used to improve access to care.