Hospital financial woes could impact local economy

DECATUR, Ill. (WAND) – Financial troubles for hospitals and clinics around the state could spill over and have an impact on businesses in rural communities.

“The hospital is often the largest employer,” stated Tracy Warner the Executive Director of the Illinois Critical Access Hospital Network. “(The) access to care drives jobs, it drives retail purchases, it drives schools, it drives daycare, it drives housing.”

Concerns are growing over the health of rural hospitals and clinics. On Thursday, Springfield Clinic announced due to financial challenges and rising operational costs, insurance reimbursement constraints and economic pressures it will be making adjustments, including budget and workforce reductions.

Hospitals and quality health care in a community also serve as an economic development tool.

“Manufacturers or businesses look to expand, or relocate, or locate in a particular area for manufacturing jobs for example, many times they will look to health care. Or, the availability of good health care as one of those decisions,” Warner said.

Medical facilities will also soon face additional strains as Congress considers making huge cuts to Medicaid.