National Rural Hospital Flexibility Program Tracking Project: Analysis of the Financial Impact of Conversion on Critical Access Hospitals (CAHs) and the Medicare Program

Research center:
Project completed:
August 2003
The purpose of this study is to measure the financial benefits of the National Rural Hospital Flexibility Program in terms of improved Critical Access Hospital (CAH) financial stability over two years, and to examine conversion-induced changes such as capital expenditures that may take more than one year to complete following conversion. Specifically, we will address the following three questions: - How has the program affected Critical Access Hospitals profits one and two years after conversion? - Have expenditures on buildings and equipment increased one and two years after conversion? - Are wage levels and employment levels increasing or decreasing one and two years after conversion?

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