Publication Date: Nov 2009
Author(s): Pink GH, Holmes GM, Slifkin RT
Research Center(s): North Carolina
Project: Analyzing Financial and Operational Performance of CAHs
Notes: Policy Brief #11
This policy brief presents the results of application of financial benchmarks to recent CAH data.
- Very few CAHs (17 of 421) performed better than benchmark on all five indicators in both 2004 and 2006.
- CAHs with net patient revenue less than $5 million were substantially less likely than larger facilities to be able to consistently perform better than the cash flow benchmark.
- It is very difficult for CAHs to concurrently generate high margins, bank a lot of cash, have little debt in the capital structure, and achieve low costs relative to charges.