Rural Hospitals Forge Alliances to Maintain Independence Amidst Consolidation Wave
BOWMAN, N.D. - Facing increasing pressure from large health systems seeking acquisition, a growing number of rural hospitals are banding together in networks to preserve local control and access to care, a strategy offering a potential lifeline for communities increasingly vulnerable to service cuts and job losses. The collaborative approach, spearheaded by organizations like Cibolo Health and the Rough Rider Network, allows smaller hospitals to pool resources, negotiate better rates, and proactively address preventative care gaps – all while remaining self-reliant.
The trend comes as rural hospitals nationwide grapple with financial instability and dwindling patient volumes. Many have been forced to consider mergers or acquisitions by larger,often urban-based,health systems,raising concerns about the future of healthcare in these communities. Unlike acquisitions, these networks aim to bolster existing services and maintain local decision-making, offering a different path to sustainability.
Gabby Wilkie, finance director at St.Kateri hospital in Rolla, North Dakota, explained that Caret Health staff proactively contacted patients behind on annual checkups, screenings, and vaccinations, emphasizing the importance of preventative care before scheduling appointments. “To be honest, we didn’t have the resources to reach out,” Wilkie said, noting the hospital estimates it would have cost $300,000 to conduct similar outreach to 1,000 patients. The partnership with Caret Health, funded in part by Cibolo Health and the Rough Rider Network, is projected to generate over $100,000 in revenue as those patients receive care.
This collaborative model extends beyond outreach. The Rough Rider Network, for example, is utilizing mobile imaging services to bring critical diagnostics directly to patients. retta Jacobi of Bowman, North Dakota, recently received an MRI scan in a mobile semitrailer operated by Southwest Healthcare Services, facilitated by Kevin Kraft, a medical assistant and the truck’s driver. without the mobile unit, Jacobi faced a ten-hour round trip to Bismarck for the scan.
“Anytime we can maintain more local control,it’s a good thing for our small towns,” Jacobi said,adding she is now receiving medication and physical therapy based on the MRI results,with a potential ultrasound-guided steroid shot as a next step if needed.
According to network leaders, maintaining local control is vital not only for patient access but also for the economic health of rural areas, where hospitals are often major employers. Goebel emphasized that larger health systems acquiring rural hospitals sometimes lead to service reductions and staff layoffs.
The initiative is now expanding to other network hospitals, offering a potential model for rural healthcare systems nationwide seeking to navigate a changing landscape and preserve their independence.
