“Critical Access Hospitals are going out of business across the country, so it is not a wise decision to obtain the CAH designation now.”

We rate this FALSE

Although a number of Critical Access Hospitals have closed or are at risk of closing, most of the factors causing the hospitals to close do not apply to Sublette County. Studies by  the Kaiser Family Foundation, Rural Health Research Gateway  and iVantage have determined that the main reasons CAH’s are at risk or have closed include the following:  1) they are too close to other hospitals, 2) more profitable patients with private insurance choose to use nearby healthcare providers outside of the system and 3) the CAH’s are in states that have not expanded Medicaid.[1] [2]   A Kaiser Family Foundation study found that the CAH’s that closed had two other hospitals within 22 miles of them, which put them in competition with too many other healthcare providers. [3]

Impact on Sublette County:  Neutral to Positive.

Although we do live in a state which has not extended Medicaid, we lack the competition from other nearby hospitals and healthcare providers which would draw away seniors and more profitable patients.  Our financial projections indicate we will be able to operate with a cash flow surplus without the Medicaid expansion.  If Medicaid expansion occurs, or the funds are transferred to the states, it would improve our financial position above current forecasts.

[1]  http://kff.org/report-section/a-look-at-rural-hospital-closures-and-implications-for-access-to-care-three-case-studies-issue-brief/

[2] http://www.healthcarefinancenews.com/news/select-medical-holdings-corporation-subsidiary-partners-virginias-riverside-health-hospital

[3]  http://kff.org/report-section/a-look-at-rural-hospital-closures-and-implications-for-access-to-care-three-case-studies-issue-brief/

*** Researched by Susan Barney

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