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U.S. Hospitals Shrink Nationwide as Closures Outpace Openings

A JAMA analysis warns that recent funding changes could raise closure risk for hospitals that serve the most vulnerable communities.

Overview

  • A research letter published Thursday, Oct. 8, 2026, found 432 hospital closures and 216 openings from 2010–2025, a net loss of 216 hospitals and about 24,400 beds.
  • Closures rose about 4% year over year while openings fell about 3% year over year, producing a steady decline in inpatient capacity across the country.
  • Researchers found similar closure rates in urban and rural areas, 9.1% and 8.3% respectively, challenging the idea that closures are mainly a rural problem.
  • Hospitals that closed were disproportionately for-profit, small, nonteaching and safety-net facilities in counties with high social vulnerability, while new hospitals skewed urban and for-profit.
  • Analysts warn that federal Medicaid spending reductions and the design of a $50 billion rural grant program may increase financial pressure on vulnerable hospitals and raise the risk of more closures in coming years.