Arizona is in the midst of a healthcare access crisis that requires immediate solutions. Nearly 2.8 million, or about 40% of the population, lives in an area that the federal government says in experiencing a healthcare shortage. The study, which was conducted in 2020, placed the Grand Canyon State 9th in the nation for the most Healthcare Provider Shortage Areas (HPSAs) – a concerning number that has only increased since the COVID-19 pandemic took hold of our nation’s healthcare system and closed many hospitals across the country.
Good solutions are hard to come by and ones that don’t cost the taxpayer anything are even harder. But as Arizonans grapple with the fastest increase in health care spending of any state in the nation, private sector solutions will be an increasingly important part of the equation to solving this health care access crisis. One such method, which has become a hot topic of late, is whether hospital mergers can prevent the hospital closure crisis facing the country and make medical care more easily accessible.
As hospitals have come under increasing financial pressure over the last decade, hospital consolidations have become a more common practice. From 2013 to 2017, 51 hospitals closed across the United States, a record number. Oftentimes, these have been smaller healthcare facilities that lack the resources and staff to provide the full breadth of care for their patients. Hospital consolidation allows for large institutions with extensive funding, experienced staff, and cutting-edge medical advancements to bring their resources to smaller institutions, often located in underserved communities. This ensures more people are given access to top-of-the-line medical care.
Such mergers have particularly benefitted hospitals in rural areas, where the health care shortage in Arizona is felt most acutely. One-third of community hospitals across the United States are considered rural, but independent hospitals in these areas are routinely denied the same resources as urban hubs, even though individuals in rural areas are more likely to develop health issues.
This leaves these healthcare facilities underequipped to care for the over 60,000,000 patients who reside in rural areas. Due to financial and staffing restrictions, rural patients have a more difficult time being seen by medical professionals. Even when the rural hospitals they visit are still able to operate – which is increasingly becoming a rarity – patients are in many cases ultimately referred to urban hospitals hundreds of miles away for specialized services, as many rural facilities don’t have the necessary clinical or technological resources for such treatments. In circumstances where these local hospitals are forced to shut down, the citizens of these communities are left with no choice but to travel to the nearest city for a hospital, in a medical emergency, extensive travel may as well be a death sentence. Consolidations help close this access divide.
The facts are well documented how hospital mergers have helped keep the doors open for rural hospitals and increased access to medicine for underserved communities across the nation. But many may not be aware how consolidations also aid healthcare facilities in improving patient outcomes as well.
A study completed by one healthcare research agency explicitly shows that hospital mergers in rural areas result in improved quality of care all around. By increasing access to financial, clinical, and technological resources, smaller healthcare facilities are lowering their patient mortality rates, and enhancing rural health as a whole. On top of better patient care, hospital mergers also play a major role in reducing urban-rural disparities in healthcare quality current facing many rural communities.
As it stands, more than 50% of rural Arizona hospitals have lost money on patient services over a recent multi-year period. This is an unsustainable trajectory that if not changed will further exacerbate Arizona’s ongoing health care access issues. Allowing the private sector to take the lead in alleviating this issue through mergers with larger institutions and networks can transform unsustainable facilities into leading hospitals with top-of-the-line care. This will help guarantee a future where safe and reliable healthcare is equally accessible to Arizonans and Americans all across the country.
Lori Klein is a former Arizona State Senator who previously was a member on the Committee on Appropriations and chaired the Subcommittee on Healthcare.