Nebraska Hospital Faces Closure as Rural Health Fund Falls Short

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Avera Creighton Hospital in Nebraska is facing financial peril, despite a new $50 billion government fund meant to transform rural healthcare. The Saint John family, who rely on the hospital for their child's medical needs, are shocked to learn of the hospital's struggles. Hundreds of rural hospitals across the country are at risk of closure due to funding problems, which were exacerbated by Medicaid cuts. While the new rural health fund was billed as a solution, experts say it is not enough to offset the losses rural hospitals are facing.

Why it matters

The potential closure of Avera Creighton Hospital highlights the broader crisis facing rural healthcare in America. Millions of Americans living in rural areas are at risk of losing access to critical medical services if their local hospitals are forced to shut down. This issue could prove pivotal in the upcoming midterm elections, as voters in rural communities grapple with concerns about healthcare access and rising costs.

The details

Avera Creighton Hospital is a critical access hospital that has been a lifeline for the Saint John family, who have a child with special medical needs. The hospital faces financial troubles despite a new $50 billion government fund meant to transform rural healthcare. Experts say the fund is not enough to offset the $137 billion in losses rural hospitals are expected to face over the next decade, in part due to Medicaid cuts. The fund is intended to support innovative healthcare solutions, not prop up struggling hospitals. Nebraska plans to use its share of the funds for initiatives like healthier school lunches and remote patient monitoring, but is only allocating $10 million to 'right-size' critical access hospitals like Creighton's.

• Last summer, the Trump administration made massive cuts to Medicaid, the government's safety net for low-income Americans, which had long helped rural hospitals meet their bottom lines.
• In 2027, new Medicaid work requirements are expected to result in millions of people losing their Medicaid benefits.

What they’re saying

What’s next

Nebraska plans to spend much of its $218 million rural health grant on initiatives like healthier school lunches and remote patient monitoring, but is only allocating $10 million to help 'right-size' critical access hospitals like Avera Creighton. State lawmakers like Barry DeKay have expressed concern about the impact of Medicaid cuts on rural hospitals and say they will work to secure more funding for them.