New program provides emergency funding to help rural hospitals stay open

CareSource’s Rural Access Advancement Program invests $5 million in rural hospitals to address cash flow challenges.

Atlanta (January 17, 2023) –  CareSource, a nonprofit mission-driven Medicaid plan serving more than 450,000 Georgians, today announced a new lifeline for rural hospitals that provides emergency funding to those in danger of closing due to cash flow challenges. The Rural Access Advancement Program will invest in rural hospitals to support the economic vitality of rural Georgia and ensure Georgians have access to quality care.

The Rural Access Advancement Program will assist rural hospitals and hospital-owned skilled nursing home facilities in rural areas in times of critical cash deficits that might otherwise lead to service limitations or hospital closures. Once the facility has stabilized, the funds will be repaid and reinvested into the program.

HomeTown Health, an organization that represents the collective voices of more than 45 rural hospitals in Georgia, has served as an advisor for the Rural Access Advancement Program and will collaborate with CareSource to establish the program’s advisory governance and funding administration.

“HomeTown Health commends CareSource for supporting Georgia’s small rural hospitals,” said Jimmy Lewis, HomeTown Health CEO. “CareSource has proven itself to be understanding of rural health care issues and challenges, and the Rural Access Advancement Program is just one more solution CareSource has created to be responsive to rural health care needs.” 

Since 2010, nine rural hospitals have closed in Georgia, making it third in the nation for hospital closures. With 26% of Georgians living outside of urban areas, these closures have a devasting effect on the communities they serve that reach far beyond access to care. Health care professionals often move to find work, businesses around the hospitals may close and new businesses are reluctant to move into the area.

“Intermittent cash flow issues pose a high risk for rural hospital closures,” said Jason Bearden, CareSource Georgia president. “When a rural hospital closes, residents are left without access to emergency services and preventive care, and the ripple effect can be felt throughout the entire community. We created the Rural Access Advancement Program to ensure access to care for Georgians and to help change the economics for Georgia rural hospitals by bridging the gaps in funding through investments in these hospitals.”

Although rural hospital finances saw improvement during the COVID-19 pandemic due to government relief funds, industry reports indicate that the outlook for the hospital sector deteriorated in 2022 and continues to decline. This can be attributed to the expiration of relief funds and ongoing pandemic effects, such as labor shortages and rising costs. CareSource’s investment will help keep rural hospitals in need afloat.

“Healthcare is faced with rising costs, labor shortages and limited cash flow which is causing a significant strain to deliver care in rural communities. Rural medicine is not only important for health care, but is also an economic driver and often the largest employer in our rural towns,” said Jonathan Green, Taylor Healthcare Group CEO. “I am very excited to be part of a groundbreaking program in partnership with CareSource that can allow some stability in the mission and vision to provide health care and resources in our rural areas.”