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Ensuring the Future of Critical Access Hospitals in Rural Communities

Critical Access Hospitals (CAHs) play a vital role in providing healthcare services in rural areas. With 38 CAHs in Washington state alone, they serve as the sole health resource for many residents. Created by federal law in 1997 and state law in 2001, these hospitals must meet specific criteria, ensuring 24-hour emergency services and limited inpatient capacity. Proposed cuts in Medicaid payments threaten their viability, risking service closures, increased travel for care, and potentially severe health impacts on patients. It's crucial for legislators to oppose such budget cuts and protect these essential healthcare resources.

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Ensuring the Future of Critical Access Hospitals in Rural Communities

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Presentation Transcript

  1. Critical Access Hospitals: Protecting an Essential Community Resource

  2. Critical Access Hospital Overview

  3. Legislative History • Federal law: 1997 • State law: 2001 • Goal: Assure essential health care services in rural areas • Must meet certain criteria, including: • No more than 25 inpatient beds • 24 hour emergency services • Defined distance from other hospitals (10-25+ miles) • Short stays (4 days or less)

  4. Washington State Locations

  5. Washington Characteristics 38 Critical Access Hospitals 40% of hospitals in state Serve over 60% of state area The only health resource for miles Often center of care network with primary care, long term care, emergency medicine

  6. Medicaid is a Significant Payer Note: Wide range of Medicaid, from 2% – 43% “Other”’ includes uninsured, underinsured, and people who do not pay for care

  7. State CAH Spending as a Percent of State Medicaid Budget Very Little of Total Medicaid Budget Spent on CAH

  8. Proposed CAH Reductions

  9. Total CAH Medicaid Payments Proposed Cut is Almost 50% of Payments Dollars in millions

  10. Impact of the Reductions

  11. Individual Hospital Margins Before the Cut Each bar represents an individual hospital

  12. Individual Hospital Margins After the Cut Each bar represents an individual hospital

  13. 24th Legislative District Impact

  14. Impact on Patients • Loss of local services • Increased travel time to care • Inability to travel for care increases risk of prolonged illness, disability, even death

  15. Loss of Services Some CAHs will close—in a few cases, fast Others will eliminate important services Adversely impact access to care In some communities, lives will be lost

  16. Effect on System • Compromises entire health care system • Increases costs by… • Delaying/avoiding care • Requiring long distance transports • Contributing to fragmentation of services • Not simply a “rural” problem

  17. Economic Impact Largest/one of the largest employers in town; Significant payroll; excellent family wage jobs Vital for attracting and keeping businesses in the rural community Layoffs and service closures will happen if the cut is enacted Significant ripple effect

  18. What We Need Legislators to stand strongly against this cut Oppose any budget that includes it

  19. Questions and Comments

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