Scotland Health Care System Responds to Recent Media Report: We Are Strong, Stable, and Growing

In response to a recent article by The Assembly suggesting that Scotland Health Care System could be among rural hospitals at risk of closure, we want to reassure our communities that we are not closing, nor are we near closing. Scotland Health has maintained financial strength and stability for more than a decade, and the facts speak for themselves. 

For the last ten years, Scotland Health has been profitable and has not experienced a financial loss during that time. Our commitment to growth and modernization is evident in the recent completion of more than $60 million in operating room renovations and expansion. Additionally, we are investing another $55 million in projects over the next three years, all funded without borrowing or outside financing. These investments reflect our confidence in the future and our dedication to providing the necessary care for our region. 

Our financial performance far exceeds industry benchmarks. In 2025, our operating margin was three times higher than the latest S&P medians for A-rated hospitals and our cash reserves (days cash on hand) are nearly 50% greater than the average standalone hospital. We’ve sustained strong margins while adding more than 100 employees this year – a clear sign of both financial strength and organizational growth. 

David Pope, President and CEO of Scotland Health, emphasized, “Two things can be true; we can be financially profitable and still be impacted by Medicaid cuts. It’s important for us to speak up for ourselves, our neighbors, and our patients — even if the impact won’t be felt as much by us right now.”  

Unlike many hospitals that rely on federal HASP funds to cover operating gaps, Scotland Health uses these funds exclusively for capital projects, further strengthening our infrastructure and services. 

Medicaid cuts from the Big Beautiful Bill will inevitably create challenges for hospitals like ours that serve a high Medicaid payor mix as mentioned in the article. Over time, these reductions could impact resources available for patient care and the services our communities depend on. While we do rely on federal funds to support our services, we are not dependent on them to operate and deliver excellent care. Scotland Health has been a good steward of its resources for more than a decade, and we remain agile and willing to think differently when faced with change. Our financial strength allows us to adjust responsibly, but we recognize that many of our rural neighbors across the state will feel these cuts more acutely. That’s why we continue to advocate for policies that protect access to care for rural communities. 

“Our commitment to our communities remains unwavering. We are financially strong, investing in growth, and continuing to provide better care for our patients,” said Pope. 

Related article by Spectrum News.