Hospitals NAICS 622110

Jan 10, 2026 - Rural Hospitals Are At High Risk Of Closure

• More than 700 rural US hospitals at risk of closing due to financial struggles, according to a December 2025 report from the Center for Healthcare Quality and Payment Reform. Rural hospitals are at risk of closing in almost every state. In the majority of states, over 25% of rural hospitals are at risk of closing, and in 10 states, 50% or more are at risk. Many hospitals have managed to remain open despite losses on patient services because they receive local tax revenues or government grants.
• A federal legislative proposal would extend the availability of healthcare AI to rural Americans and seniors, according to Healthcare IT. The Health Tech Investment Act would assign all FDA-approved AI-enabled devices a temporary payment classification for a minimum of five years, pending the collection of accurate cost data and the issuance of a permanent CMS payment code. Providers including rural hospitals are likely to benefit from a temporary payment classification for FDA-approved AI-enabled devices.

• Legislation ending the federal government shutdown will extend Medicare coverage of two telehealth services through January 30, 2026, and will pay retroactively for services rendered during the shutdown. One service provided greater flexibility for telehealth and another allowed hospitals to continue high-level care at home. Both of the COVID-era federal government programs that expanded access to telehealth expired when lawmakers failed to pass a budget plan by September 30, 2025. Restrictions on who could get telehealth services covered by Medicare were tighter before the COVID-19 pandemic. Virtual healthcare appointments were mostly reserved for beneficiaries living in rural areas, provider facilities in rural areas, or those working with certain types of providers. Some pandemic-driven changes were permanent but others rely on temporary waivers to operate. Some of these temporary allowances included the ability to use telehealth services from anywhere without geographic restrictions, to have appointments in audio-only formats, and to receive mental health and behavioral healthcare virtually without regular in-person appointments.
• The Producer Price Index for general medical and surgical hospitals increased 3.02% year over year in September, according to the US Bureau of Labor Statistics. (BLS). Hospital industry employment and average wages for nonsupervisory employees increased slightly during the first eight months of 2025, according to the BLS.