Effects of rural hospital closures on nurse staffing levels and health care utilization at nearby hospitals

Jing Dong, Siying Liu, Asefeh Faraz Covelli and Guido Cataife

Health Economics, 2024, vol. 33, issue 12, 2687-2707

Abstract: Our study examines the causal effect of rural hospital closures on nearby hospitals' nurse staffing levels and health care utilization. We use data from the 2014–2019 American Hospital Association Survey on nurse staffing level outcomes including licensed practical or vocational nurses (LPNs), registered nurses (RNs), and advanced practice nurses (APNs); and health care utilization outcomes, including inpatient and outpatient surgical operations and emergency department (ED) visits. Using propensity score matching and difference‐in‐differences (DID) methods, we find that rural hospital closures lead to an average increase of 37.3% in the number of nurses in nearby rural hospitals during the 4 years following the closure. This increase is found across all categories of nurses, including LPNs, RNs, and APNs. We also find a substantial increase in the provision of inpatient and outpatient surgical operations but there is no change in ED visits. We do not find any effects for nearby urban hospitals. Our study suggests that a large proportion of the nursing workforce relocates to nearby hospitals after a rural hospital closure, which mitigates the negative consequences of such closures and allows these nearby hospitals to provide a larger volume of highly profitable services.

Date: 2024
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https://doi.org/10.1002/hec.4889

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Persistent link: https://EconPapers.repec.org/RePEc:wly:hlthec:v:33:y:2024:i:12:p:2687-2707

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