Astria Health

Astria Health's December 2019 bankruptcy collapsed a rural Washington state hospital system after a failed merger created unmanageable debt. The system serving the Yakima Valley had merged with regional partners, accumulated debt, and couldn't generate sufficient revenue from a payer mix heavy with Medicare and Medicaid. Rural hospitals face structural economics: high fixed costs, limited patient volume, and reimbursement rates that don't cover costs. Astria emerged from bankruptcy smaller, with closed facilities.