Developing Financial Benchmarks for CAHs

Publication Date: Apr 2009
Author(s): Pink GH, Holmes GM, Slifkin RT, Thompson RE
Research Center(s): North Carolina
Project: Analyzing Financial and Operational Performance of CAHs
Topic(s): Finance

This study developed and applied bench­marks for five indicators included in the CAH Financial Indicators Report, an an­nual, hospital-specific report distributed to all critical access hospitals (CAHs). An on­line survey of Chief Executive Officers and Chief Financial Officers was used to estab­lish benchmarks. Indicator values for 2004, 2005, and 2006 were calculated for 421 CAHs and hospital performance was com­pared to the benchmarks. Although many hospitals performed better than benchmark on one indicator in 1 year, very few per­formed better than benchmark on all five indicators in all 3 years. The probability of performing better than benchmark differed among peer groups.

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