Blog Hippo

How Rural Hospitals Can Survive the One Big Beautiful Bill

Hippo can help you take the lead in delivering better care with fewer resources, right where it’s needed most.

The One Big Beautiful Bill OBBB may carry a celebratory name, but for rural hospitals, it represents a growing crisis that could permanently reshape the healthcare landscape in America’s heartland.

This sweeping new law includes billions in Medicaid funding cuts, the elimination of directed payment programs, tighter eligibility for ACA subsidies, and the introduction of Medicaid work requirements. The consequences of the new law are already being seen, with hospitals reducing staff, cutting services, and in some cases, preparing to close their doors. For rural hospitals already operating on razor-thin margins, this is not just another policy shift. It is a direct threat to their survival.

Hippo Coactive Care™ from Virtual Care pioneer Hippo Technologies is a forward-thinking alternative that can help rural hospitals build infrastructure that supports the long-term sustainability and better outcomes that have been compromised by this new law.

A Polycrisis in Motion

Physicians have called the One Big Beautiful Bill “the final straw” that will drive more hospitals to shut their doors in the coming months. The CEO of Newman Memorial Hospital in rural Oklahoma told Becker’s Hospital Review that he foresees a future in which hospitals lose money on every Medicaid and Medicare patient they treat. Providence Health System estimates it could see a $500 million annual financial impact, while hospitals in Louisiana and Mississippi are preparing for a combined loss of $5.7 billion.

The damage is especially pronounced in states like Oklahoma, where nearly 100 hospitals depend on the directed payments now slated for elimination. Without that support, hospitals face a spike in uninsured patients, rising levels of uncompensated care, and growing pressure on already overburdened emergency departments.

“The new Medicaid cuts will cripple rural and post-acute care facilities, who are already in trouble,” says Dr. Patrick Quinlan, CEO and founder of Hippo Technologies. “At this point, more of the same is not going to fix it. The only solution is to redesign the failing care model to rebuild your workforce, expertise, and growth.”

From Referral Centers to “Centers of Confidence”

Hippo Coactive Care’s virtual-first care model revolutionizes rural healthcare by combining remote clinical expertise, smart medical devices, and clinician-design workflow into one comprehensive platform. Unlike traditional telehealth, Hippo Coactive Care does more than digitize visits. It enables true clinical collaboration and makes high-quality care accessible wherever the patient happens to be.

The system is built on a smartphone- and tablet-based platform that connects rural providers with a network of remote specialists who support onsite clinicians during patient visits. By enabling remote collaboration and team-based care through Assisted Reality (AR) headsets, Hippo’s hands-free, voice-activated technology provides a “you are there” virtual experience, connecting remote specialists with local caregivers and patients for real-time expert guidance and support.

Central to the Coactive Care model is a Clinician Extender™ who works directly with the patients while receiving real-time input from a remote specialist to facilitate diagnosis, education, and a care plan. This approach not only improves patient outcomes, but also supports early intervention to reduce medical complications. Even facilities without full-time specialists can now offer comprehensive care without delay or costly patient transfers.

“Hippo Coactive Care provides remote expertise and community staffing to turn around these floundering facilities,” says Dr. Quinlan. “They can evolve from being dwindling referral centers into Centers of Confidence. Rural facilities can become growing Health Hubs, where people come to get the care they need, rather than driving past them to urban hospitals.”

Smart Tools That Expand Capabilities

In addition to its hands-free, virtual-first care model, what sets Hippo apart is the integration of advanced diagnostic tools that support full medical evaluations remotely.      These tools include:

  • eStethoscopes for cardiac and respiratory assessments
  • RAIsonance cough analysis technology, which can identify respiratory infections including COVID and tuberculosis
  • Seamless communication between onsite staff and remote clinicians via a rapid-connect, smartphone- and tablet-based platform

This approach enables a nurse or medical assistant in a rural clinic to deliver a high-quality exam, guided in real time by a specialist located elsewhere. The model is affordable, flexible, and scalable.

A New Strategy for Rural Survival

Rural healthcare is being strained from multiple directions. Budget cuts, staffing shortages, payer denials, and inflation are converging to create a multifaceted crisis. The old ways of operating are no longer enough. What is needed now is a system that adapts to complexity and evolves with patient needs.

At hospitals like Newman Memorial, strategic investments in new service lines and referral partnerships have increased annual patient visits by 24,000. The hospital has opened new primary care clinics, expanded into specialty services, and rebuilt its referral base to recapture lost patient volume.

Strategy alone is not enough, however. These hospitals need infrastructure that supports long-term sustainability and better outcomes. Hippo Coactive Care provides that foundation by bringing advanced tools and expert support directly into rural communities, without requiring major capital investments.

 

Beyond Telehealth

It is important to note that Coactive Care is more than basic telehealth. Traditional virtual visits are limited in scope. They rely heavily on the patient’s ability to self-report symptoms and offer little support for physical exams or data gathering.

In contrast, Hippo Coactive Care embeds virtual expertise directly into the clinical workflow. The Augmented Reality platform allows for real-time collaboration between onsite staff and remote clinicians with a “through the eyes of the clinician” viewpoint, and includes diagnostic tools, curated patient data, and support for longitudinal care planning.

“Complex patients who generate most of the cost require the comprehensive range of solutions that Hippo provides,” says Dr. Quinlan. “This foundation ensures the patient’s care begins on solid footing. It allows us to get it right the first time, every time, and avoid the merry-go-round of referrals with uncertain outcomes.”

A Path Forward

Despite the significant financial headwinds, many rural hospitals are choosing to invest in innovation and future-proof their care delivery. They are shifting care models, embracing new technologies, and seeking partnerships that support sustainable growth. The hospitals that survive the One Big Beautiful Bill will be the ones that act boldly and adapt quickly.

Survival will not come from budget cuts alone. It will come from fresh thinking, smarter models, and technologies that are tailored to the needs of complex rural communities. Hippo Coactive Care is one of the few solutions that offers the scale, flexibility, and clinical integrity to make that transformation possible.

The time for action is now. Rural hospitals must move decisively or risk becoming the next casualty of a policy designed with good intentions but devastating effects.

Hippo Coactive Care gives you the tools, technology, and clinical support to deliver better care with fewer resources, right where it’s needed most. Let’s talk about how we can help your facility not only survive, but thrive.

contact sales

contact support