Texas Hospitals Face Strain, Possible Closure, According to New Report

A new study finds that nearly one in every ten hospitals in Texas is at risk of closing.

A new Texas Health Association report looked into data on hospital financial instability and closure risks that could impact patient care and access to health care in Texas.

The report, which looked at data from the beginning of the pandemic through August 2022, found five key findings:

• Nearly twice as many hospitals are at risk of closure without help from the CARES Act.
• Margins remain depressed relative to pre-pandemic levels, meaning hospitals are not covering the cost of patient care.
• Expenses for both labor and medical supplies are highly elevated from pre-pandemic levels.
• Hospital volumes remain below pre-pandemic levels, but the lengths of stay are on the rise.
• Hospitals have faced a profound financial toll, with no further relief in sight.

The report highlights the toll on hospitals as they face strain from respiratory illness surges, workforce shortages and rising costs.