In a recent meeting of the House Health Finance and Policy Committee, representatives from critical access hospitals, including Riverview Health in Crookston, voiced urgent concerns about their financial stability and the impact of rising costs on healthcare services. The discussions highlighted the challenges faced by rural hospitals, particularly in light of the COVID-19 pandemic and ongoing economic inflation.

Riverview Health, which recently opened a new facility after borrowing $54 million, reported significant financial losses over the past three years, amounting to between $5 million and $6 million annually. This has resulted in a negative operating margin of 9 to 10 percent, raising alarms about the hospital's viability. The facility currently has only 52 days of cash on hand, a precarious situation that could threaten its ability to operate if revenue streams were to dry up.

The hospital's leadership emphasized the critical role of the 340B drug pricing program, which allows them to purchase medications at reduced prices, enabling them to provide affordable care to patients. However, they noted that the financial strain has forced them to make difficult decisions, including the closure of their nursing home, which has had a ripple effect on the local economy and healthcare access.

The representatives called for immediate relief and support from the state, stressing the need for increased funding to address the financial gaps exacerbated by high Medicaid populations and the rising costs of care. They underscored the importance of their services to the community, not only as healthcare providers but also as significant employers in the region.

Additionally, the meeting touched on the scrutiny faced by hospitals regarding their tax-exempt status. Riverview Health reported contributing approximately $5.5 million annually in community benefits, despite operating at a loss. The leadership expressed frustration over being singled out for examination while other facilities with stronger financials remain unchallenged.

As the legislative session progresses, the unified voice of Minnesota's hospitals is expected to advocate for solutions to secure funding and ensure the sustainability of healthcare services in rural areas. The discussions at this meeting reflect a broader concern about the future of healthcare access in communities that rely heavily on these critical access hospitals.