Government Accountability

How Rural Texas Lost Its Babies: The Hidden Costs Behind a Hospital Closure

By Economics Desk | November 14, 2025

A century-old Texas hospital closes its labor and delivery unit despite a new facility funded by wind farm taxes, exposing chronic state failures that force rural communities to drive farther for childbirth.

In Olney, Texas, the age-old promise of rural healthcare has hit a devastating crossroads. The town’s proud, century-old Olney Hamilton Hospital recently broke ground on a brand-new building funded by unexpected wind energy tax revenues—a rare financial boost most rural facilities can only dream of. Yet, in an ironic twist driven by bureaucracy and skyrocketing costs, this symbol of renewal will no longer deliver babies.When Cutting Costs Means Cutting LifelinesThis decision wasn’t made lightly. It was forced by escalating expenses, shrinking reimbursements, and a crushing state Medicaid system that pays some of the lowest rates in the nation for obstetric...

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