How state policy affects rural hospital consortia: the rural health care delivery system.

Rural hospitals face the issue of survival on a daily basis. Because of their small economic base and more complex service area, rural hospitals will require external assistance. The impact of government regulations on the formation of rural hospital consortia is scrutinized, particularly the incentives arising through Medicaid, certificate of need, and physician licensure requirements that spur hospitals to join consortia. These organizations of individual hospitals appear to be a feasible option for ensuring rural hospital survival.