Rural Hospitals Uniting to Ensure Their Continued Existence

In rural America, the landscape of healthcare is changing, with hospitals joining clinically integrated networks to improve patient care, save costs, and remain independent. One such network is the Rough Rider Network, which serves about two-thirds of rural North Dakotans.

The Rough Rider Network, launched with the help of Cibolo Health, is a prime example of this new model. MRI technician Helen Cryan and the truck's driver, Kevin Kraft, who also works as a medical assistant, are just two of the many shared resources facilitated by the Rough Rider Network. The mobile MRI unit visiting Southwest Healthcare Services in Bowman, North Dakota, is another example.

The motivation for joining these networks includes the opportunity to combine patient rolls for value-based care contracts. By pooling resources, hospitals can negotiate better pricing from health care vendors, a significant advantage over individual, smaller hospitals.

Cibolo Health, a for-profit company that provides management services to nonprofit networks owned by hospitals, has helped start networks in Minnesota, Nebraska, Montana, Ohio, and is opening a sixth one in September. Cibolo-affiliated networks will represent more than 120 hospitals, with service areas covering 4.7 million people.

These networks also invest in community development projects, such as broadband and housing, to help people stay healthy and access care. Sharing specialists who aren't needed full time at any one hospital is another way networks save costs.

Independent rural hospitals in North Dakota are joining these networks to avoid selling out to larger health systems. St. Kateri hospital, a member of the Rough Rider Network, estimates it will earn more than $100,000 when 1,000 patients come in for their preventive care.

Since 2010, 153 rural hospitals in the U.S. have shuttered completely or stopped offering inpatient services. Between 2011 and 2021, 441 rural hospitals merged with or were acquired by hospital systems. Joining a network to remain independent can be beneficial for the economy of rural areas, where hospitals are often major employers.

The Rural Health Transformation Program, part of President Donald Trump's recent tax and spending bill, is being explored as a potential funding source for starting or expanding these networks. However, the search results do not specify which organizations have received support to use the Rural Health Transformation Program to start or expand new or existing networks for independent rural hospitals.

Leaders from 10 other states are considering joining this model. The networks pay an annual fee to Cibolo Health for management services, and both the Rough Rider Network and Cibolo Health contribute to the cost of the Caret Health service, which helps patients catch up with preventive care.

In conclusion, clinically integrated networks are proving to be a valuable resource for rural hospitals, offering a way to share resources, save money, and improve patient care. As more states consider adopting this model, the future of rural healthcare looks promising.