Compared to urban hospitals, rural hospitals report lower operating margins and thus are at greater risk of hospital closure. Many states have established special Medicaid payment policies for rural hospitals.
This fact sheet describes the role of rural hospitals in serving Medicaid beneficiaries and how Medicaid programs pay rural hospitals. Download MACPAC’s state policy compendium on State Medicaid Payment Policies for Inpatient Hospital Services to see each state’s fee-for-service inpatient hospital payment policy.