Rural Health News is a weekly segment of Rural Health Today, a podcast by Hillsdale Hospital.
Rural Health News 5-4-2026
Welcome back to Rural Health News, the segment of Rural Health Today where we fill you in on the latest in rural health headlines. We’ll cover three headlines in today’s episode: what’s most urgent, a rural health damage report, and a success story to send us into the week.
Most Urgent
Hospitals, agencies and associations across the US are currently lifting their voices to oppose the 340B Rebate Model Pilot Program, either calling for its dismissal entirely, asking for clarification to address serious concerns, or requesting exemption for certain classifications of healthcare providers. Last year, drug costs for hospitals grew 13.6%, far outpacing hospital prices, which only rose 3.3% in 2025. Without vital programs like 340B, our rural hospitals cannot support some of the most basic services their communities need. That’s why it’s so vital we tell our stories as rural providers who need the 340B discount program to keep care close to home.
Damage Report
Reduced reimbursement and anticipation of Medicaid cuts are already cutting off access to health services in rural America. In Arkansas, Medicaid and Medicare reimbursement is lower than it is in most other states and commercial insurance payments are only 164% of the rate that Medicare pays, making it one of five states with commercial insurance rates under 200% of Medicare rates. Arkansas is an example of how rural hospitals have to work harder with fewer resources to keep their doors open. In the past six years, eight hospitals in the state have closed their labor and delivery units, and now, only 22 out of the 75 counties in Arkansas have birthing care. Most recently, Jacksonville’s only hospital closed its ER and medical surgical unit due to low reimbursement and high rates of uninsured patients.
Each hospital closure we hear about reminds us of the communities that get left behind, under-resourced and lacking the access they need to vital health services. This leaves communities without care, without their economic engines, and without the 24/7 safety net those neighborhoods once relied on.
Success Story
Rural healthcare facilities face significant provider staffing challenges, creating primary and specialty care deserts across the US. The University of North Carolina System recently awarded $6.4 million in funding to help several of its universities establish and grow rural healthcare workforce training programs. The purpose of these programs is to train healthcare students and connect them to where they are needed the most in rural facilities. We love hearing about programs like these that place healthcare students in our rural communities where opportunities to thrive in a meaningful career can be found at local hospitals.
Sources
Gary L. Roth, DO, “Fact Check: Drug Pricing Savings Are the Lifeline to Community Healthcare Services,” April 30, 2026, https://www.mha.org/newsroom/fact-check-drug-pricing-savings-are-the-lifeline-to-community-healthcare-services/, Michigan Health and Hospital Association.
American Hospital Association, “AHA urges HRSA to act as Eli Lilly threatens 340B discounts over claims data submission policy,” April 27, 2026, https://www.aha.org/news/headline/2026-04-27-aha-urges-hrsa-act-eli-lilly-threatens-340b-discounts-over-claims-data-submission-policy.
American Hospital Association, “Washington Post publishes AHA letter in response to anti-340B editorial,” April 22, 2025, https://www.aha.org/news/headline/2026-04-22-washington-post-publishes-aha-letter-response-anti-340b-editorial.
Jennifer Wessel, JD, MPH, “Commercial Insurers’ Payments to Hospitals Closer to Medicare Rates in Arkansas Than in Any Other State,” May 15, 2024, https://achi.net/newsroom/commercial-insurers-payments-to-hospitals-closer-to-medicare-rates-in-arkansas-than-in-any-other-state/, Arkansas Center for Health Improvement.
Tess Vrbin, “Low reimbursement rates force Arkansas hospitals to scale back services,” April 21, 2026, https://arkansasadvocate.com/2026/04/21/low-reimbursement-rates-force-arkansas-hospitals-to-scale-back-services/, Arkansas Advocate.
The University of North Carolina System, “UNC System awards over $6.4 million to expand rural health care training programs across North Carolina,” April 29, 2026, https://www.northcarolina.edu/news/unc-system-awards-over-6-4-million-to-expand-rural-health-care-training-programs-across-north-carolina/.
Rural Health Today is a production of Hillsdale Hospital in Hillsdale, Michigan and a member of the Health Podcast Network. Our host is JJ Hodshire, our producer is Kyrsten Newlon, and our audio engineer is Kenji Ulmer. Special thanks to our special guests for sharing their expertise on the show, and also to the Hillsdale Hospital marketing team. If you want to submit a question for us to answer on the podcast or learn more about Rural Health Today, visit ruralhealthtoday.com.
