The Financial Benefits of Critical Access Hospital Conversion for FY 1999 and FY 2000 Converters: Working Paper #51

This working paper examines the financial effect Critical Access Hospital (CAH) status has on small rural hospitals one to two years after they converted to cost-based Medicare reimbursement for outpatient and acute inpatient services. It provides information on conversion requirements and benefits, and describes the incentives that facilities can potentially receive if they convert to CAH status. The paper includes a comparison of pre- and postconversion financial changes on CAH’s to small rural hospitals that did not convert to cost-based Medicare reimbursement. It includes tables, figures, and references.