Change in Profitability and Financial Distress of Critical Access Hospitals from Loss of Cost-Based Reimbursement

Date
12/2013
Description

Reports that changes to Critical Access Hospitals (CAHs) reimbursement, such as a reversion to prospective payment, would have marked negative effects on CAH profitability and financial health. Roughly three quarters of CAHs would operate at a loss. The number of CAHs at high risk for financial distress would nearly triple and nearly half of CAHs would be at medium-high to high risk of financial distress.

Center
Rapid Response to Requests for Rural Data Analysis
Authors
Mark Holmes, George Pink