The closure of the 37-bed hospital in our small community in Northern California last year was devastating. Disbelieving doctors, nurses, clinical and support staff and community members cried, held vigils and mourned the loss of our community hospital.
Palm Drive Hospital had served this community continuously for 73 years. The first hospital was built in 1941. It was replaced by a modern new 47-bed hospital structure that opened in 1975. However, by 2014 the hospital’s owner, Palm Drive Health Care District, was facing its second bankruptcy in just seven years. The hospital closed its doors on April 27, 2014.
When a small rural hospital closes its doors, the effects on its community can be dramatic. Rural hospitals are economic engines in their communities, as they are usually the largest employer in town. And of course, jobs in hospitals are paid well above the average of other employers in the area. Hospital jobs also cause a positive ripple effect by helping to grow other jobs in the community as well.
And 200 employees (the number employed at Palm Drive Hospital when it closed) and their families, living locally, will support more jobs--jobs like school teachers, grocery clerks, food establishments, veterinarians and more. A study at Oklahoma State University in 2003 determined that for every rural hospital job lost, there was an additional .38 jobs lost in the community. Or in other words, when 200 hospital jobs disappear, there will be an additional 76 additional jobs lost in the community. In a small community of 10,000 people, the loss of 276 jobs is a catastrophe.
Most people, however, don’t think about the economic impact of hospitals when they close their doors. We all know that hospitals save lives. Throughout my career, I have always been impressed by the number of people who step forward, on a regular basis, and say “if it weren’t for that hospital, I wouldn’t be alive today.” Every hospital has hundreds, if not thousands of stories like this. Hospital workers, especially those working in emergency departments, are here to provide immediate care in the event of stroke, heart attack, traumatic injury or event. There is no doubt that the loss of a sole community provider hospital will cost lives.
According to the American Hospital Association, there are 1,971 rural community hospitals in the United States. They represent 35 percent of all hospitals in our country. In the past five years, there have been 55 rural hospital closures, or an average of more than 10 closures per year.
What can be done to save our rural hospitals? In the case of Palm Drive Hospital, the community is fighting back. With no major healthcare systems or neighboring hospitals willing to step in and revitalize the hospital, the local community is opening the hospital on its own. Millions of dollars of local donations have been raised to reopen the hospital.
The medical community has responded as well. Local family physicians and specialists with large referral practices are supporting the hospital. A state-of-the-art electronic medical record system has been donated. And donations have been used to renovate this 40-year old hospital and to build a staff that is on a mission to prove that a local community hospital that emphasizes high quality medical care and superior patient satisfaction can be successful.
Time will tell if our rejuvenated hospital will be able to reverse the trend and bring back high-quality, local care. All eyes will be on us to see if this is a model that can be used successfully in other small communities in the U.S. If the enthusiasm of our community and our staff is any indicator, and if we deliver on our promises, then I expect our small hospital to be a huge success.
Raymond Hino, MPA, FACHE, is the president and CEO of the Sonoma West Medical Center in California.