Two West Alabama Rural Hospitals on “Danger of Closure” List
Two West Alabama rural hospitals and one in South Alabama are listed among three in the state that are in danger of joining a long list of such hospitals that have already closed in Alabama. Public Citizen, a left-leaning non-profit founded by political activist and consumer protection advocate Ralph Nader has named Hale County Hospital in Greensboro, Hill Hospital of Sumter County and Grove Hill Memorial Hospital as hospitals at a heightened risk for closure or a reduction in services.
In a website article entitled The Big Ugly Threat to Safety Net Hospitals by Eileen O'Grady analysed the hospitals that are at risk. She blames President Trump's The One Big Beautiful Bill Act for massive cuts in Medicaid for the pressure being applied to healthcare, especially in rural areas.
Since 2010, at least seven Alabama rural hospitals have closed according to the Alabama Hospitals Association. They have identified 19 others that are risk.
Bibb/Chilton/Shelby Senator April Weaver (R-14) wrote in a 2025 Yellowhammer News guest editorial that hospitals are more than treatment center, "They are economic anchors. Nearly 78,000 Alabamians work in hospitals, and hospitals generate an astonishing $25 billion in economic impact (to Alabama)."
The Alabama Rural Hospital Investment Program, established by the Legislature in 2025, is a significant effort by the state to save hospitals like the three named by Public Citizen. Under the program taxpayers may contribute to eligible rural hospitals and receive a full, dollar-for-dollar state tax credit. These credits may be applied to income, utility, insurance premiums, and excise taxes—giving donors flexibility while ensuring rural hospitals receive vital support. Contributions can be made directly to a rural hospital or to a third-party entity that will then distribute them to hospitals based on a financial-needs ranking.
Sen. Weaver noted that Alabama cannot stop with the investment program and must create innovative policies and incentives to provide further support.
The study found.446 hospitals nationwide are at heightened risk of closing or reducing services due to Medicaid cuts and that translates to 69,000 beds serving 6.6 million people. The analysis includes two types of Medicare-designated hospital facilities: Short-term (General and Specialty) Hospitals and Critical Access Hospitals.
While the study and resultant article blame Medicaid cuts for the crisis facing hospitals, the Alabama Hospital association reports the cuts don't have as much of an impact on Alabama as other states because the State of Alabama refused to expand Medicaid.
The Public Citizen report used hospital financial data for 2022 through 2024, the most recent available from the Centers for Medicare and Medicaid Services.
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