A recent study published in JAMA by researchers from Johns Hopkins University and Brown University highlights the financial challenges faced by Critical Access Hospitals (CAHs) compared to larger acute care hospitals.
Key findings include:
- Operating Margins: From 2016 to 2022, independent CAHs had an average operating margin of 2.6%, while those affiliated with health systems achieved 7%. In contrast, independent non-CAHs reported margins of 11.4%, and system-affiliated non-CAHs reached 16.6%.
- Impact of System Affiliation: System-affiliated CAHs experienced 63% higher operating margins than independent ones, largely due to better negotiating power with commercial insurers.
- Service Pricing: These affiliated hospitals charged higher service prices, with inpatient commercial prices increasing by 7.1% and outpatient prices by 11.7% compared to independent CAHs.
- Challenges in Rural Healthcare: Despite their essential role, CAHs continue to face significant financial challenges, including limited access to care, fewer economic opportunities, and higher levels of illness in rural populations.
AAMC Research Institute
This study points out that optimizing revenue production from current services is essential to the financial success of your hospital. And in today’s environment of sophisticated EMRs, nursing documentation is where that begins. Being aware of the challenges to the documentation of care provided is crucial to revenue optimization.
For more information about how our health consultants at Net Revenue can help your CAH increase operating room and emergency room revenue, contact our team today!