RUGBY, ND ( KXNET ) — You might remember that the town of Rugby got a new hospital recently, but many towns across North Dakota are not so lucky.

And, that’s because many hospitals are facing ongoing financial troubles.

According to the American Hospital Association, hospital labor costs have increased by $43 billion for hospitals nationwide from 2021 to 2023 with rural hospitals being affected the hardest.

According to the American Heart Association, as of this April, 12 of the 39 rural hospitals in North Dakota are at risk of closing permanently. However, according to the USDA Secretary of Rural Development, this has been a problem years in the making.

“During the 70s and the 80s and now again, the revenue streams just aren’t there. They don’t have the population that a lot of these communities once had and so a lot of these hospitals aren’t able to provide services that they once did,” said Dr. Basil Gooden, USDA Under Secretary for Rural Development.

According to Dr. Gooden, better hospitals in rural communities attract new businesses as well as bring improved educational outcomes to surrounding schools.

USDA Rural Development has helped with the creation of new hospitals in North Dakota, as well as keeping existing ones open.

They most recently provided $50 million in funding for that new hospital in Rugby as well as $25 million for last year’s renovation of the Northwood Deaconess Health Center.

Dr. Gooden says that Rural Development has put more funding into hospitals than most people might think.

“Right now, there’s actually seven hospitals that Rural Development has put funding into to ensure that they stay open or we’re actually reopening hospitals as well,” said Dr. Gooden.

And, that was all right here in North Dakota.

For more information on what the USDA Rural Development team does, you can click here .

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