Hospitals Double Down on Community Needs, Maintaining Services Despite Financial Strain
CHICAGO – As financial headwinds buffet the healthcare industry, a growing number of hospital systems are bucking conventional wisdom by investing in services often considered financial liabilities, prioritizing community need over immediate profitability. From bolstering security to preserving vital women’s health and behavioral care options,hospital leaders are demonstrating a commitment to their local populations even as margins tighten.
The trend reflects a shift toward recognizing the broader value of healthcare access, particularly in rural and underserved areas. Perry County Memorial Hospital in Tell City, Indiana, recently launched its own police force – a significant undertaking for a critical access hospital – driven by concerns for staff and patient safety. “The return on investment is not a financial one by any means, rather it is indeed an investment in the safety of our staff and patients,” CEO Jared Stimpson told Becker’s Hospital Review. “As a rural hospital, the financial commitment for a 24/7 police force is great, and much more difficult for us to bear than the larger hospitals, but nonetheless, it is just as necessary given the hazardous climate we are in today.”
Stimpson added that the hospital maintains several non-profit service lines, including a women’s healthcare clinic slated to open in early November, despite closing its obstetrics department in December 2023.
Similarly, Stoughton Health in Wisconsin is prioritizing its geriatric psychiatric inpatient program. “Despite financial pressures, this investment remains essential given the shortage of inpatient behavioral health beds,” explained President and CEO Chris Brabant. “Maintaining this service ensures vulnerable older adults receive the specialized care they need, while strengthening our commitment to the community.” Stoughton Health operates Stoughton Hospital alongside a medical group, rehabilitation clinics, and urgent care centers.
The commitment extends to services frequently abandoned by struggling hospitals.Austin Jones, senior vice president and CFO of NKC Health in North Kansas City, Missouri, revealed the system has actively invested in labor and delivery services, despite the fact that it’s “typically a loss leader.” He told Becker’s in August, “We’ve even invested in labor and delivery services, which many hospitals are divesting from, because our community needed it.It’s typically a loss leader, but we are community-focused – from the board of trustees to the front line – and we heard the need. That investment is paying dividends.”
These examples illustrate a growing recognition that a hospital’s role extends beyond financial performance, and that maintaining access to essential services can yield long-term benefits for both the community and the institution itself.
