Risk of Financial Distress Among CAHs: A Proposed Model (Policy Brief #20)


This brief presents a model to predict the financial distress of CAHs, which will be further refined based on input from researchers, practitioners, and CAH administrators.

Key Findings 

  • The model separates hospitals into risk of financial distress categories; hospitals in the highest risk category had up to 15 times the rate of financial distress events as hospitals in the lowest category.
  • Risk of financial distress categories can provide an effective early warning system for CAH boards and administrators as well as enable state program directors to prioritize resources more effectively.


Finance Financial Distress