Wipfli's 2024 State of Rural Healthcare Report Unveils Optimism Amidst Financial Challenges

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Jan 31, 2024, 09:00 ET

Rural health organizations remain confident in ability to adapt after years of turmoil.

MILWAUKEE, Jan. 31, 2024 /PRNewswire/ -- Wipfli LLP (Wipfli), a top 20 advisory and accounting firm, announced today the release of its second annual "State of Rural Healthcare Report," providing a comprehensive analysis of the current landscape and future outlook for rural healthcare organizations. The report, based on a survey of over 100 rural healthcare entities across 26 states, sheds light on the financial concerns, strategic priorities, and challenges in rural health.

The report highlights the optimism prevailing among rural healthcare organizations, with 91% expressing either "cautious" or "complete" optimism about their financial viability. Despite the challenges posed by inflation, higher expenses, and the end of COVID-19 funding, 40% of organizations reported higher financial stability compared to a year ago.

"The resiliency of rural healthcare organizations heading into 2024 is impressive," said Kelly Arduino, healthcare practice leader at Wipfli. "Rural health is comparatively less financially stressed than larger hospital systems, where layoffs are more common. We're starting to see rural organizations change their tactics in managing their workforce; culture and better benefits are seeing higher payoffs for retaining top talent. However, there are certainly regional differences in terms of how rural providers and critical access care hospitals are performing, with a number of these facilities facing serious challenges with uncertain outcomes."

Despite a nationwide labor shortage, over a third of respondents noted an improvement in their workforce situation compared to last year. Leadership training is identified as a key need, with 52% of organizations acknowledging it could help address staffing issues. Also, financial stability remains a key focus, with 60% of organizations believing they are in better financial shape today than five years ago. However, most organizations surveyed don't plan to eliminate or reduce services, while 55% are looking at ways to reduce costs. At the same time, within certain regions, some rural healthcare providers expressed concerns about rebalancing financials, as back-office work can distract from patient care. In addition, some smaller independent hospitals feel they're at a disadvantage when they're renegotiating payor contracts due to smaller hospitals having less leverage with commercial insurers.

Digital transformation is a unanimous pursuit among rural healthcare organizations, with 18% of respondents fully embracing it and 52% planning to expand their AI capabilities within the next 12 months. Cybersecurity and digital risks are emerging concerns, prompting organizations to implement safeguards, cyber risk assessments, and penetration testing.

Finally, to maintain financial stability for the future, rural healthcare organizations plan to assess their revenue cycles, create new revenue-capturing initiatives and increase market share in their primary territories.

Learn more by downloading the entire 2024 State of Rural Healthcare report.

About Wipfli
With more than 70,000 clients and approximately 3,100 associates, Wipfli ranks among the largest accounting and advisory firms in the nation. We bring integrated solutions to help our clients turn data into insights, optimize workflows, increase margins and transform through digital innovation.

Media contact:
Scott Cianciulli
The Plunkett Group
(212) 739-6753
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SOURCE Wipfli LLP