CapRock Health System to close, highlighting broader challenges in healthcare access

exas (KBTX) -CapRock Health System, a fixture in Bryan-College Station healthcare for the past decade, is set to close its hospital in Bryan and 24-hour emergency center in College Station on December 13, 2024. In a statement, CapRock leadership cited financial and market factors as the primary reasons for the closure.

"It has been our privilege to provide patients with the highest quality emergency and hospital care. Due to a combination of economic and market factors, it is no longer feasible for CapRock to continue our operations," the statement said.

They emphasized that the decision does not reflect the quality of care provided by their staff and thanked employees and patients for their trust. Currently, they're the only 100% locally owned healthcare system and are known for patient-centered care and community involvement.

An internal memo shared with KBTX outlined plans for severance packages for staff and resources to assist with the transition. Patients have been advised to visit CapRock's website to access medical records and account information.

Community Impact

The closure of the CapRock Health System raises concerns about healthcare access in the region. Elena Andreeva, an assistant professor at Texas A&M's School of Public Health and a health economist, explained that Bryan-College Station sits in a unique position—neither fully rural nor urban—but still faces challenges when providers shut down.

"Bryan-College Station lies somewhere between the challenges faced by Houston suburbs and deep rural counties," Andreeva said. "Closure of providers could have a larger effect here than in larger metro areas like Austin or Dallas."

Mixed effects of hospital closures in general

Dr. Andreeva pointed to mixed findings in healthcare research regarding hospital closures. In rural areas, closures often lead to increased mortality and worse outcomes for time-sensitive conditions like heart attacks and strokes due to longer travel times. However, she noted that the effects vary depending on the circumstances.

"Hospitals that close have often gone through several stages of financial distress," she said. "Some studies suggest these hospitals may already provide lower-quality care, which can mitigate the impact of their closure."

While CapRock's closure is significant, Andreeva emphasized that Bryan-College Station has additional healthcare capacity through St. Joseph Health and Baylor Scott & White.

"The impact remains to be seen, but it will likely be less severe here than in areas with no alternative providers," she added.

A broader statewide trend

The challenges faced by CapRock Health System mirror a growing trend in Texas and across the nation. Between 2010 and 2021, 136 rural hospitals closed nationwide, with 19 shutting down in 2020 alone, according to the American Hospital Association. As of 2023, over 600 rural hospitals are at risk of closure due to financial losses and low patient volumes.

Texas leads the nation in rural hospital closures, with 26 facilities shutting down since 2010, according to the Texas Organization of Rural and Community Hospitals. This trend leaves many communities with fewer healthcare options, forcing residents to travel farther or delay treatment. Financial challenges, such as low Medicaid reimbursement rates, and staffing shortages are key contributors.

Recent closures, like St. Mark's Medical Center in La Grange, highlight the ongoing impact. Policymakers are exploring solutions, including financial support and telehealth, but experts say more needs to be done to protect access to care in these vulnerable areas.

"Hospitals are expensive to run, and personnel costs account for half of those expenses," Andreeva said. "In rural areas, many hospitals rely heavily on Medicare, and the reimbursement rates are often insufficient."

Andreeva suggested that while Medicare reimbursement policies are set federally, Texas could work to ensure robust outpatient and preventive care options in areas where hospitals close.

"If Medicare reimbursements are really the reason rural hospitals close, then it is more of a national problem than Texas only problem. I think making sure that a community still has robust preventive and outpatient care, even if a hospital is forced to close because they are financially insolvent, they cannot find a buyer, and they don't have enough patient population to sustain their operations," she said.

"I think making sure that the area, the county, whatever it is, has enough primary care and outpatient providers that at least could help patients on a day-to-day basis to make sure they take care of their chronic conditions, to make sure that they get their annual evaluations, annual exams, to make sure that no disease is being missed, no underlying condition is being missed. I think that's a potential part of the solution to the issues with healthcare delivery in rural areas," she added.

Looking forward

For Bryan-College Station residents, Andreeva offered reassurance.

"Again, Bryan, College Station, not being a deep rural Texas county, does have other healthcare capacities with St. Joe's and Baylor, Scott and White. So how exactly the closure of CapRock will affect Bryan, College Station remains to be seen, and it is probably something that we will not be able to determine at least until a few months to a year in," Andreeva said. "However, as of right now, I would say not to panic because again, they were not the only healthcare provider in Bryan, College Station, and they were not the largest healthcare provider, so their effect on the capacity of healthcare resources probably will not be as large as if we lost St. Joseph's or Baylor Scott & White.

Official statement on the closing of CapRock Hospital and freestanding emergency center