Two Ballad Health hospitals at risk of closure

TRI-CITIES (WCYB) — Two Ballad Health hospitals are at risk of closure, according to a new report from the Virginia Joint Commission on Healthcare.

According to the report, Dickenson Community Hospital and Smyth County Community Hospital are at risk of closure.

It’s the second-highest risk level under “immediate risk of closure.”

The report cites low patient volumes, rising costs, workforce shortages, and low reimbursement rates from Medicare, Medicaid, and private insurers as the primary drivers.

Ballad Health released the following statement:

Many organizations publish reports on the financial stability of rural hospitals, each using their own formula to speculate which hospitals may be at risk for closure. It is because of Ballad Health that, in this challenging environment for hospitals, no community in Southwest Virginia has lost access to a hospital. In fact, one hospital – Lee County Community Hospital, which closed before the creation of Ballad Health – was reopened by Ballad Health.In the absence of Ballad Health, more hospitals would have closed in Southwest Virginia. However, rather than closing hospitals, Ballad Health has invested tens of millions of dollars in introducing new technology, hiring new physicians and expanding services to Southwest Virginia.Comment with Bubbles

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The passage of H.R. 1 does pose new challenges to rural hospitals. In 2028, rural hospitals face material cuts. Proposed rules by the Centers for Medicare and Medicaid Services go even further than the legislation in making these cuts. Ballad Health is monitoring this situation and will advocate aggressively to preserve rural access to community hospitals.