Impact of Critical Access Hospital (CAH) Conversion on Hospital Costs and Mix of Services

​Three cohorts of Critical Access Hospitals (CAHs) were followed over time, corresponding to the first three years of conversions in 1999 through 2001. For each cohort, project staff identified a similar set of rural non-CAHs for use as control hospitals. Measures of hospital costs and expenditures included inpatient and outpatient revenue, total margins, number of fulltime employees (FTEs) for the facility and hospital, salary as a percent of expenditures, salary per FTE, inpatient revenue as a percent of all revenue, and revenue per bed. For each of these measures, comparisons were made for the pre- and post-conversion trends observed for each cohort of CAHs with trends over the same time period for corresponding control hospitals.

This project was conducted as part of the Rural Health Research and Policy Center.

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