Why Utah Rural Hospitals Defy National Closure Trends

by Stacey Tyler
| Sep 8, 2025

The big picture: While rural hospitals nationwide face closure at alarming rates, Utah stands out as a success story with none currently at risk of shutting down.

By the numbers:

  • 146 rural hospitals closed across America between 2005 and 2023 (USDA)
  • 0 rural hospitals in Utah are currently at risk of closure (Becker’s Healthcare)

Why it matters: Rural hospitals provide essential healthcare services, emergency care, and often serve as economic anchors in their communities. Their stability ensures rural Utahns maintain access to critical healthcare services.

What’s working: According to Matt McCullough from the Utah Hospital Association, several factors contribute to Utah’s rural hospital stability:

  • Strong Medicaid reimbursement rates – About 13% of rural hospital revenue comes from Medicaid
  • Consistent leadership and governance – Including committed community boards
  • Strategic partnerships – Telehealth connections with major systems like University of Utah Health and Intermountain Health
  • State-level support programs – Including targeted initiatives for rural healthcare

Success story: Uintah Basin Medical Center in Roosevelt demonstrates the impact of innovative approaches, serving cancer patients locally through tele-oncology services. This program saves patients hundreds of miles in travel while providing high-quality care close to home.

Between the lines: Telehealth services have been crucial in addressing specialist shortages in rural areas. Major Utah health systems now provide nearly a dozen telehealth specialties to rural facilities, including stroke care, burn treatment, ICU support, and neonatology.

Yes, but: Challenges persist. Rural hospitals still face workforce recruitment difficulties and potential threats from proposed Medicaid cuts, which could disproportionately impact rural facilities where a higher percentage of patients rely on government insurance.

The bottom line: Utah’s collaborative approach between hospitals, communities, and policymakers has created a resilient rural healthcare system that continues to serve its communities despite nationwide trends toward closure.