Rural Physician Recruiting Challenges and Solutions

Introduction AMN Healthcare Physician Solutions (formerly Merritt Hawkins) is the nation’s leading physician and advanced practitioner search and consulting organization. As the thought leaders in its field, AMN Healthcare produces a series of surveys, white paper, podcasts, speaking presentations and other resources providing data and insights into physician supply and demand trends, physician compensation, practice patterns, recruiting strategies, and related topics. This white paper examines the strategies rural healthcare facilities can employ to enhance their physician recruiting success. The Challenges of Rural Physician Recruiting The many challenges facing rural hospitals have been well documented over the last several years. According to a recent University of North Carolina study, 120 rural hospitals have closed since 2010, or seven percent of all rural hospitals. Of the 1,884 rural hospitals that remain, 453, or one-quarter, are in danger of closing ( 1 in 4 Rural Hospitals At Risk of Closure. Forbes. February 24, 2020 ). Rural hospital closures have been particularly prevalent in the South and Midwest. Since 2010, 20 rural hospitals in Texas have closed, 12 in Tennessee, 7 in Oklahoma, and 6 in Georgia, Alabama, and Mississippi. The consequences for patients in areas where rural hospitals have closed are significant, as one study found that the death rate increases by 6% in areas where rural hospitals have had to shut down (Forbes, February 24, 2020) . Over 60 million people in the U.S. live in rural areas, or 19% of the total population, and many experience poor access to healthcare services. The Effect of Covid-19 The coronavirus pandemic has greatly exacerbated an already dire situation. As of October, 2020, 15 rural hospitals had closed, including 11 since March, 2020, when Covid-19 began to spread (Rural U.S. Hospitals on Life Support. Time. October 20, 2020 ). As of 2021, the virus has made even more inroads into rural areas and has become a critical challenge facing rural hospitals administrators, physicians and other healthcare professionals. Causes of Rural Hospital Distress The tenuous financial state of many rural hospitals is a result of various factors, including the 2013 budget sequestration which cut Medicare payments by 2 percent, as well as reductions in payments included in the Affordable Care Act (ACA). Nationally, mandated payment cuts have cost rural hospitals $2.8 billion in Medicare reimbursement, according to the iVantage study. This includes cuts to disproportionate share (DSH) payments made to rural hospitals. These cuts were intended to be offset by Medicaid expansion as outlined in the ACA, but 19 states have elected not to expand Medicaid. About one- quarter (24%) of non-elderly adults in rural areas are covered by Medicaid, a fact underscoring the negative financial impact on rural hospitals in states where Medicaid was not expanded. (Forbes, February 24, 2020) .

AMNHealthcare.com | 2 AMNHealthcare.com | 2

Made with FlippingBook. PDF to flipbook with ease