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    Consideration on Rural Hospitals

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    As a staffing agency in working with radiology departments for small and rural hospitals, what would be considered the organizational and competitive environment effecting the industry? What are some of the advantages and disadvantages?

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    There are hundreds of small and rural hospitals across the country that are "too busy" to be eligible for the Critical Access Hospital (CAH) program but not "busy enough" for the fixed cost assumptions inherent in the Prospective Payment System (PPS). Many of these hospitals don't have Medicare-Dependent Hospital or Sole Community Hospital status and of those that do, many don't receive significant assistance. As a group, these hospitals are heavily Medicare dependent with massively negative Medicare margins and meager or nonexistent operating margins.

      In 2002, The Rural Community Hospital Assistance Act was introduced to enhance the Critical Access Hospital (CAH) program and to create a new Medicare payment classification for rural hospitals with 50 or fewer acute care beds. This new classification would be called Rural Community Hospital (RCH). RCH protects the core infrastructure of rural health ...

    Solution Summary

    This solution provides a detailed assessment of the organizational environment of the rural hospital industry.