Bloomberg Law
March 30, 2021, 9:00 AM

ANALYSIS: For Rural Hospitals, Stimulus Cash Might Not Be Enough

Jeffrey P. Fuller
Jeffrey P. Fuller
Legal Analyst

Rural hospitals have been closing at an alarming rate. Before last year, these hospitals were already struggling, but the Covid-19 pandemic has only made their bad financial situation worse. Although rural hospitals may currently have cash on hand from government aid, and more stimulus aid is on the way, many of them may still face closure this year unless additional help is provided. While some of these hospitals may end up turning to Chapter 11, restructuring costs may be too burdensome for others.

Pre-Pandemic Peril

Even before the Covid-19 pandemic, many rural hospitals were navigating financial distress. According to data ...