Requiring critical access hospitals that are less than 15 miles from another hospital to revert to the hospital prospective payment system would generate modest savings for Medicare but likely be disruptive to the communities that depend on these hospitals for their health care, according to a study in the April issue of Health Affairs. “A substantial reduction in financial support could lead to a renewal of the high rural hospital closure rates of the 1990s, with concomitant deleterious effects on the health of those communities,” the authors said. The study also found that patients were more likely to receive certain recommended care at CAHs located less than 15 miles from another hospital. The CAH program provides cost-based reimbursement to low-volume hospitals whose Medicare costs exceed prospective payment system rates. Several changes to CAH eligibility have been proposed, most focused on mandating that hospitals be located a certain minimum distance from the nearest hospital. Initially, CAHs were required to be more than 35 miles from the nearest hospital, or more than 15 miles in areas with mountainous terrain or only secondary roads. From 1997 through December 2005, states could waive the distance requirements for hospitals designated by the governor as “necessary providers” of health care services. Since 2006, new CAHs must meet the distance requirements, but existing necessary provider CAHs have been allowed to remain in the program.

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The Health Resources and Services Administration is seeking applicants for its Rural Hospital Provider Assistance Program, which provides financial assistance…
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The Centers for Medicare & Medicaid Services June 12 issued a final rule revising how the agency conducts oversight of accrediting organizations that…
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The Department of Health and Human Services Office of Inspector General June 11 released two reports on high rates of coverage denials by Medicare Advantage…
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The Hospital Insurance Trust Fund has been projected to become insolvent in 2033, according to the Medicare Board of Trustees’ annual report released June 9.…
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The House Appropriations Committee June 4 released the fiscal year 2027 appropriations bill for the Departments of Labor, Health and Human Services, Education…
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Members of Congress and hospital and health system leaders today gathered for a briefing in Washington, D.C., to discuss how payment delays in Medicare…