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DENTON — Shore Regional Health officials presented troubling statistics for rural hospitals at the Caroline County Commissioners meeting Tuesday.

According to Shore Regional President Ken Kozel, 191 rural hospitals have closed or converted their facilities nationwide since 2005, and 36 rural hospital have closed since 2020.

“It’s mainly resulting in financial pressures,� Kozel said. “It’s the finance of trying to keep the business afloat with very thin margins.�

Kozel mentioned the state and federal government are working together on a new payment model that he said will help the state maintain rural health care. The payment model is called the AHEAD model.

“Some of the changes that are coming about as a result of the new model is that it really focuses us on taking care of preventative health, preventative medicine,� Kozel said.

“... In addition to preventative health through primary care, they also want us to focus on improving outcomes, making sure that we focus on those chronic diseases that patients have and improve the health of those patients and then reduce spending overall. If the government looks at their spending capabilities, they recognize that we need to cut back on cost associated with healthcare across this country,� he said.

Kozel also mentioned a federal funding push from President Donald Trump’s “Big Beautiful Bill� that could have a positive short-term effect and potential long-term negative effects on rural hospitals across the nation.

Within the Trump Administration’s bill is $50 billion that will go to rural hospitals. Each state can apply for the funding, which will last for five years.

The $50 million will go toward goals like workforce development, sustaining access to medical providers and providing more access points.

It is divided into two parts, with $25 billion to be distributed evenly between approved states and the remaining $25 billion to be distributed by the Centers of Medicare and Medicaid based on a state’s rural health needs.

“It’s kind of if you have to apply to it at the state level, you have to qualify for what the state is looking to improve in rural health care, and then the state has to get those funds from the federal government and allocate them locally,� Kozel said.

While the funding will help rural areas in America, Kozel and Commissioners President Travis Breeding said local communities should be wary of relying on the funds.

“It sounds to me like that’s a temporary subsidy if it’s all being used for just salary augmentation,� Breeding said.

“You’re right,� Kozel said to Breeding. “And it’s five years. The other piece on that slide said that if we don’t meet metrics associated with those funds that not only will they stop, but they could claw them back as well.

“So it’s a fixed amount of money, that’s the other thing. We can solicit those funds, but we’ve got to figure out a way to sustain services when the funds dry up.�