13 Virginia Rural Hospitals at Risk of Closure, State Report Finds
A June 4 report from the Virginia Joint Commission on Health Care found that 13 of the state's 36 rural hospitals are at risk of closure. Five facilities were classified as being at "immediate risk": Bon Secours Southampton Memorial Hospital, Carilion Giles Community Hospital, Carilion Tazewell Community Hospital, Sentara Halifax Regional Hospital, and VCU Health Tappahannock Hospital.
The eight other hospitals identified as being "at risk of closure" were Ballad Health Dickenson Community Hospital, Ballad Health Smyth County Community Hospital, Bath Community Hospital, Bon Secours Rappahannock General Hospital, Bon Secours Southern Virginia Medical Center, Duke Lifepoint Twin County Regional Hospital, HCA LewisGale Hospital Pulaski, and VCU Health Community Memorial Hospital.
According to the report, the analysis used a methodology that classifies hospitals with both negative operating margins and low net assets as being at "immediate risk." The document cited challenges including low patient volumes, unfavorable payer mix, inadequate reimbursement, rising costs, and workforce shortages as drivers of financial distress.
Despite Sentara Halifax Regional Hospital being on the immediate risk list with a reported $19.1 million operating loss in 2024, a spokesperson for Sentara Health stated there are no plans to close the facility and noted a new hospital is under construction. A Bon Secours spokesperson acknowledged intensifying headwinds for rural healthcare but stated its hospitals remain open.