As hospital closures continue to reshape health care delivery across the United States, new research from the Workers Compensation Research Institute (WCRI) sheds light on the ripple effects those closures can have on employees recovering from workplace injuries.
The study explores how the loss of hospitals in both rural and urban communities influences injured workers' ability to obtain medical treatment, how quickly they recover, and the broader financial implications for the workers' compensation system.
The study titled, "Impact of Hospital Closures on Access to Care and Claim Outcomes," and authored by Drs. Bogdan Savych and Olesya Fomenko, underscores the growing connection between health care infrastructure and occupational recovery, particularly as care delivery continues to evolve nationwide.
Drawing from more than 12 million non-fatal workers' compensation claims across 29 states, the report examines injuries that occurred over an 11-year period ending in 2023. Researchers evaluated outcomes one year after injury, focusing on how changes in health care access affect medical treatment patterns, disability duration, and overall claim costs.
One of the report's central findings is that hospital closures can create significant barriers to timely care, particularly in rural areas where alternative providers may be limited. Injured workers often face longer travel distances for emergency treatment, primary care, and specialty services, potentially delaying diagnosis and rehabilitation. The study also found that closures may alter where workers first seek treatment, reducing the likelihood that initial care occurs in a hospital setting.
Beyond inconvenience, the research highlights the economic and recovery-related consequences of reduced access to healthcare. Delays in treatment or disruptions in continuity of care can contribute to longer periods of temporary disability, higher medical expenses, and increased indemnity costs within workers' compensation claims. These findings suggest that healthcare infrastructure plays a direct role not only in patient outcomes, but also in employer and insurer costs.
More than 140 rural hospitals in the United States closed or stopped providing inpatient services between 2005 and 2023, according to the United States Department of Agriculture Economic Research Service. Researchers identified 146 rural hospital closures or conversions during that period, including 81 hospitals that shut down completely. Hundreds more rural hospitals face serious financial vulnerability.
The report arrives at a time when health care systems nationwide are under mounting financial pressure, leading to an increasing number of hospital shutdowns and service reductions. While the broader public health implications of closures have been widely discussed, the WCRI analysis focuses specifically on injured workers — a population that depends heavily on prompt and coordinated care to return to work safely and efficiently.
Researchers note that the workers' compensation system provides a unique lens through which to evaluate the real-world consequences of health care access disruptions because it tracks both medical utilization and recovery times. The findings may help policymakers, insurers, employers, and health care providers better understand how changes in local health care availability can influence workforce recovery and claim outcomes.
Maura Keller is a Minnesota-based freelance writer and editor.
(Lead image credit: gpointstudio/Shutterstock.com)
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