The important contribution of hospitals to the economies of rural areas has been the subject of several research studies. The results, however, have been contradictory. This paper analyzes the economic impact of rural hospital closures on rural communities in Georgia, Tennessee, and Texas in the period 1998-2000 by using a quasi-experimental control group method. The results indicate that rural communities that suffered hospital closures were not affected in economic terms relative to those that did not suffer such a closure.