As you know from your own home state, the challenges faced by rural communities are many. Resources are limited, poverty rates are high and rural communities are notoriously susceptible to economic downturns when crop prices drop or natural disasters strike. Higher rates of rural poverty increase the importance of temporary financial assistance, child care subsidies, Head Start and other social services programs. The rural health care system is also quite fragile. Hospitals in rural areas are disproportionately dependent on Medicare and Medicaid reimbursements.
Communities have a hard time attracting and retaining doctors and other health care providers.
Rural hospitals and rural health care systems play a much larger role in their local communities than simply providing health care services. They are often among the largest local employers and a bellwether of the economic health of a small town. Research shows that the health sector provides 10 to 15 percent of the jobs in many rural counties, and that if the secondary benefits of those jobs are included, the health care sector accounts for 15 to 20 percent of all jobs. On an individual employer basis, hospitals are often second only to school systems as the largest employer in rural counties. A strong rural hospital can be a solid foundation for a strong small town with a diversified local economy and can serve as a magnet for other economic development.