Medicare will cut payments to rural rehab hospitals for the second year in a row

Medicare is continuing a three-year plan to reduce how much it pays inpatient rehabilitation facilities in rural areas. This means rural hospitals will get less money for the same services, making it harder for them to stay open.

Rural hospitals often operate on thin margins, and Medicare payments are a major source of their revenue. Reducing these payments makes it harder for rural facilities to cover their costs, potentially leading to closures or reduced services. This change is part of a broader trend where rural healthcare providers face increasing financial pressure, often leading to reduced access to care for patients in those areas.