Publication Date: Oct 2019
Author(s): Knocke K, Reiter KL, Pink GH
Research Center(s): North Carolina
Project: The Characteristics of Communities Served by CAHs at High Risk of Financial Distress and Best Practices for CAHs in Environments Predictive of High Risk of Financial Distress
Under the Medicare Rural Hospital Flexibility Program, states with Critical Access Hospitals (CAHs) are eligible to receive federal funds to support hospital improvement. This study finds:
- CAHs typically change activities year to year rather than continue the same activity. Further, in the second and third years of the evaluation period, less than 50% of CAHs participated in a financial or operational improvement intervention.
- Over the three years examined, the typical activity pathway for a given CAH through a performance period is an initial assessment in year one, and an in-depth assessment in both years two and three.
- Compared to CAHs at low risk of financial distress, CAHs at higher risk of financial distress are more likely to participate in financial and operational improvement activities.
- Additional data on the intensity of each CAH activity is needed to determine how Flex resources are distributed among CAHs at higher risk of financial distress.