Healthcare access challenges grow in northern New England amid facility closures

Tuesday, July 1, 2025
Susan M. Collins, President & Chief Executive Officer | Federal Reserve Bank of Boston
Healthcare access challenges grow in northern New England amid facility closures

Two days after giving birth, Brianna Lareau found herself traveling 120 miles across New Hampshire for medical care. Her journey highlights the challenges faced by patients in northern New England due to increasing distances from healthcare facilities. Lareau's experience underscores a broader issue affecting rural areas, where access to healthcare is becoming more difficult.

Riley Sullivan, a senior policy analyst at the Federal Reserve Bank of Boston, notes that greater distances from hospitals are linked to higher rates of fatal accidents and health issues. Hospitals face financial pressures and workforce shortages, leading some to cut services or close units altogether.

Dr. Sunil “Sunny” Eappen, CEO of The University of Vermont Health Network, emphasizes the need for economic development to improve healthcare access in rural areas. He suggests that attracting young people could help reverse current trends.

The situation is further complicated by rising living costs and housing shortages in northern New England. Mary Burke from the Boston Fed points out that these factors make it challenging for healthcare workers to settle in rural areas.

Healthcare systems also struggle with low reimbursement rates and an aging population requiring more medical care. Dr. Anne Morris from Vermont describes efforts to attract primary care providers through loan repayment programs but acknowledges ongoing recruitment challenges.

Steve Michaud of the Maine Hospital Association describes significant financial losses among hospitals as they contend with post-pandemic labor shortages and inflationary pressures. He calls for federal support to stabilize the healthcare system amid demographic shifts.

Despite these challenges, efforts like the North Country Maternity Network aim to address care deserts by coordinating resources across regions. However, sustaining healthcare services remains a pressing concern as populations decline and facilities face financial strain.

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