In 2016, the NC Rural Health Research Program developed and utilized the Financial Distress Index (FDI) model to identify hospitals at high risk of financial distress and assess trends in varying risk of financial distress over time to help inform strategies to prevent or mitigate the effects of closures. We found the proportion of rural… Read more »
Rural Hospital Mergers from 2005 through 2016
Hospital mergers and acquisitions are changing the face of health care in both rural and urban communities across the country. There are many factors driving mergers, such as cost savings, increased access to capital, increased access to technology, etc., but concerns about rural hospital mergers have also been voiced, including reduced negotiating power with insurers,… Read more »
Rural and Urban Provider Market Share of Inpatient Post-Acute Care Services Provided to Rural Medicare Beneficiaries
As new Medicare payment models are implemented, there is some concern about how it will affect inpatient post-acute care in rural areas. Changes in referral patterns and utilization could make maintaining these services financially difficult in rural areas, which could ultimately reduce access to local PAC for rural residents. To learn more, the NC Rural… Read more »
Market Characteristics Associated with Rural Hospitals’ Provision of Post-Acute Care
Post-acute care (PAC) in rural hospitals, particularly Critical Access Hospitals (CAHs), represents an important source of PAC access in rural areas. In addition, a rural hospital’s financial health often depends on providing services that meet local need. Over time, some changes in Medicare payment policies have adversely affected rural providers. For example, when the Balanced… Read more »
Geographic Variation in the 2016 Profitability of Urban and Rural Hospitals
Rural hospital closures remain a worrisome issue for policy makers and communities: between 2010 and 2017, 83 rural hospitals closed. The NC Rural Health Research Program tracks these closures and studies potential predictors. Profitability is not the only predictor, but it is one of the main predictors of hospital closure. Researchers and policy makers are… Read more »
Range Matters: Rural Averages Can Conceal Important Information
Researchers often use averages to describe data. The average (or the mean) of a data set can be used to identify the central value of the group, or what is typical. While valuable, it’s also important to understand the range of data—the highs and lows. What might we miss by focusing on the average? When… Read more »
Access to Care: Populations in Counties with No FQHC, RHC, or Acute Care Hospital
Rural areas have more limited access to health care than urban areas. In 2013, there were 79.3 primary care physicians per 100,000 people in metropolitan counties, compared to only 55.1 per 100,000 people in non-metropolitan counties. To help provide a quick understanding of how many people may have more limited access to primary care and where… Read more »
Characteristics of Communities Served by Hospitals at High Risk of Financial Distress
Since 2005, there have been 124 rural hospital closures in the United States. Rural hospital closures can intensify already challenging health and economic issues for rural communities. People served by rural hospitals tend to be older, poorer, have access to fewer health care professionals, and have overall worse health outcomes than those served by urban hospitals. To… Read more »
Differences in Community Characteristics of Sole Community Hospitals
In 1983, Congress created the Sole Community Hospital (SCH) program to support small rural hospitals for which “by reason of factors such as isolated location, weather conditions, travel conditions, or absence of other hospitals, is the sole source of inpatient hospital services reasonably available in a geographic area to Medicare beneficiaries.” A SCH is often… Read more »
Rural-Urban Variations in Medicare Live Discharge Patterns from Hospice, 2012-2013
For the last decade-and-a-half, the proportion of patients discharged from the Medicare hospice program prior to death – known as a “live discharge” – has increased across the country with significant hospice-level geographic variations. Despite clear geographic variations in live discharge rates and known rural-urban disparities (e.g., patients of rural hospices have higher satisfaction), previous… Read more »
The Financial Importance of Medicare Post-Acute and Hospice Care to Rural Hospitals
The provision of post-acute (PAC) and hospice care by rural hospitals allows patients to receive such care locally, avoiding unnecessary travel and staying close to family and friends. Typically, rural residents discharged from an acute care facility receive PAC either locally or in the urban center where acute care was provided. Policy makers are considering… Read more »
CMS Hospital Quality Star Rating: for 762 Rural Hospitals, No Stars Is the Problem
In April 2017, the Centers for Medicare & Medicaid Services (CMS) released their fourth Hospital Quality Star Rating list. Since the first release, stakeholders have been publicly debating the star rating scale’s usefulness in comparing hospital quality, but little focus has been given to the large number of rural hospitals with no rating. In the… Read more »
The Financial Importance of the Sole Community Hospital Payment Designation
In 1983, Congress created the Sole Community Hospital (SCH) program to support small rural hospitals for which “by reason of factors such as isolated location, weather conditions, travel conditions, or absence of other hospitals, is the sole source of inpatient hospital services reasonably available in a geographic area to Medicare beneficiaries.” As such, Medicare SCH… Read more »
The Impact of the Low Volume Hospital (LVH) Program on the Viability of Small, Rural Hospitals
Thanks to a temporary, but substantial expansion of the Centers for Medicare & Medicaid Services (CMS) Low Volume Hospital (LVH) Program, around 500 rural hospitals benefit from LVH payment adjustment. When it was originally implemented in 2005 only five rural hospitals qualified. Under the program, CMS provides an additional payment to qualifying hospitals for the higher costs associated with… Read more »
Trends in Risk of Financial Distress among Rural Hospitals
From January 2005 to July 2016, 118 rural hospitals have closed permanently, not including seven others that closed and subsequently reopened. The number of closures has increased each year since 2010, and in the first half of 2016, the closure rate surpassed two closures per month. Hospital closures impact millions of rural residents in communities… Read more »