Aug 10, 2026 · 18 min · 9 segments
In this episode we cover: Texas has more at-risk rural hospitals than any other state in the country — and the $50 billion Rural Health Transformation Program just arrived to try to change that. We…
Eric MarrHost
So what does the landscape look like? Well, let's start with the baseline because you can't really understand what the RHTP is focused on without understanding how bad the snapshot already is.

But there is an invisible crisis going on at the exact same time that we're having this discussion because before a hospital closes, there are services that just kind of quietly disappear.

The Texas Hospital Association put it, you know, plainly back in, uh, January of 2026 because rural hospitals are on what they call a constant and financially distressing high wire, battling closure risk, tight margins debt, and significant cuts to Medicaid.

But let's talk about what the high wire looks like from the CEO's chair because the macro numbers don't really tell the whole story.

The Texas Organization of Rural and Community Hospitals Clinically Integrated Network, or TORCH-CIN, representing 45 rural and community hospitals across the state, recently notified United Healthcare that it plans to terminate all participation agreements.

And for those that are on this podcast for the first time, check out last week's podcast.

Rural hospitals are paid up to 53% less than metropolitan hospitals for emergency department visits and up to 44% less for maternity and OB delivery services.

Paul Asselin, TORCH-CIN executive director, put it simply, his member hospitals have been absorbing these underpayments for more than a decade while their costs have only increased.

Quote, "Our hospitals are lifelines for the people they serve, many of whom have no other option within a reasonable distance.

But we cannot continue operating under contract terms that make it financially impossible to keep the lights on.

That's a survival instinct." Across the country, rural hospital leaders are making deliberate and, frankly, often painful decisions to keep things going.

So what does the landscape look like? Well, let's start with the baseline because you can't really understand what the RHTP is focused on without understanding how bad the snapshot already is.

But there is an invisible crisis going on at the exact same time that we're having this discussion because before a hospital closes, there are services that just kind of quietly disappear.

The Texas Hospital Association put it, you know, plainly back in, uh, January of 2026 because rural hospitals are on what they call a constant and financially distressing high wire, battling closure risk, tight margins debt, and significant cuts to Medicaid.

But let's talk about what the high wire looks like from the CEO's chair because the macro numbers don't really tell the whole story.

The Texas Organization of Rural and Community Hospitals Clinically Integrated Network, or TORCH-CIN, representing 45 rural and community hospitals across the state, recently notified United Healthcare that it plans to terminate all participation agreements.

And for those that are on this podcast for the first time, check out last week's podcast.

Rural hospitals are paid up to 53% less than metropolitan hospitals for emergency department visits and up to 44% less for maternity and OB delivery services.

Paul Asselin, TORCH-CIN executive director, put it simply, his member hospitals have been absorbing these underpayments for more than a decade while their costs have only increased.

Quote, "Our hospitals are lifelines for the people they serve, many of whom have no other option within a reasonable distance.

But we cannot continue operating under contract terms that make it financially impossible to keep the lights on.

That's a survival instinct." Across the country, rural hospital leaders are making deliberate and, frankly, often painful decisions to keep things going.
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