Virginia

Virginia Rural Hospitals Face Financial Peril

“A Virginia legislative report found seven rural hospitals are at the highest risk of financial distress or closure under at least one national assessment model,” The Center Square reported. “All seven reported negative operating margins in 2024.”

Staff told commission members that rural hospitals face challenges including lower patient volumes, higher percentages of Medicare and Medicaid patients, workforce shortages and rising operating costs.

The report to the Joint Commission on Health Care highlighted seven facilities — Bon Secours Southampton Memorial, Bon Secours Southern Virginia Medical Center, Carilion Giles Community, Carilion Tazewell Community, Sentara Halifax Regional, VCU Health Community Memorial and VCU Health Tappahannock — amid broader statewide pressures on rural care. Patient volumes have dropped sharply over the past decade while labor costs continue to climb.

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