Fixed-to-Total Cost Ratio Is Predictive of Rural Hospital Financial Distress and Closures

Date
01/2026
Journal
Journal of Rural Health
Description

This study examines how cost structure affects rural hospital financial viability. The findings indicate that heavy fixed cost burdens limit rural hospitals' ability to respond to declining volumes, making cost structure a key indicator of vulnerability and a useful metric for informing rural payment and policy interventions.

Center
North Carolina Rural Health Research and Policy Analysis Center
Authors
Saleema Karim, Kristie Thompson, George Pink, Mark Holmes