Those in the AHA would not be surprised if in the short term, a couple of rural hospitals reach that point.
That’s because state hospitals have lost $1.5 billion since the start of the pandemic, and closing the health insurance coverage gap is the main issue at play here, according to Howard.
Nearly 300,000 low-income Alabamians fall into this coverage gap because they make too much to qualify for Medicaid, but too little to afford private health insurance.
Howard says Alabama’s hospitals provide more than $650 million in uncompensated care every single year, and the math for staying open doesn’t add up.
“Imagine any business that provides goods and services being required to give away for free whatever their goods or services are to everyone who walks in the door, regardless of their ability to pay for that goods and services. How long were those businesses stay in operation? Not long,” Howard said.
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