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Our opinion: Low margins in rural health care

The sudden closure of the Pine Grove Ambulatory Surgery Center came as a shock – until, that is, one looks at the spending and expenses for the facility.

According to state data, the Pine Grove Ambulatory Surgery Center had 2,778 total visits in 2023, though no other data was given related to the age of those using the facility. According to state data, patient revenue at the Pine Grove Ambulatory Center had increased over the past three years from $2,583,000 to $3,508,000 in 2023, though spending had also gone up from $2,591,000 to $3,587,000 in 2023.

Essentially, the facility was basically breaking even. It’s basically the story of rural health care – though one could argue that the Pine Grove Ambulatory Surgery Center was one of the lucky ones since it was at least roughly breaking even financially.

Ambulatory surgery, also known as outpatient surgery, office surgery, or same-day surgery, is a surgical procedure that doesn’t require an overnight hospital stay. Ambulatory surgery can be performed at an ambulatory surgery center like the Pine Grove facility rather than in a hospital. That means these facilities can be a blessing to those who may not be able to travel to Erie or Pittsburgh for some minor surgeries.

The Pine Grove facility’s closure is surprising, but it shines a light on the tenuous nature of providing health care in rural areas where populations are dwindling and poverty rates are high. Facilities are relying on public payment rates that often simply aren’t high enough to pay for the care that was provided – and there aren’t enough private pay cases to make up the difference. It’s an issue happening throughout the state, including at some rural hospitals.

Rural health care is an issue that needs more attention from state lawmakers, because the shoestring budgets that keep many rural health care providers afloat are fraying. Sooner or later they will break.

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