Challenges in operating rural hospitals

Kaiser Health News published a short article about an entrepreneur buying distressed hospitals from local governments in order to turn them around. As the article underscores, the local governments have had such a difficult time operating the hospitals that they are willing to sell the hospital and equipment for $20,000 or even $100. Of course, the hospitals require substantial investment and must remain as hospitals or else revert back to the local governments.

This story could be a positive one about an unconventional industry insider successfully turning around ailing hospitals, or it could be yet another chapter in a string of setbacks for these hospitals. As expensive as patients might think it can be to visit hospitals for medical treatment, many of these hospitals -- particularly rural hospitals -- run on thin margins.