Core Competency: Improving Financial Sustainability

For years, rural hospitals have experienced many financial challenges including shifting reimbursement models and market fluctuations. Unfortunately, in recent years, several small rural facilities have closed due to these challenges while many that remain open are financially strained or distressed.

While state Flex Program staff don’t have to be experts in finance or operations, having a solid grasp on the basics helps them to better support the hospitals and clinics they serve through the Flex Program. A good understanding guides impactful project planning and helps steer strong financial and operational initiatives. It is also helpful for Flex Programs to know where they can find specialized expertise for help with operational or financial improvement projects like TASC and FMT as well as how to access and use financial data and resources including CAHMPAS.

PROFICIENCIES:

Recognize the basic concepts of CAH and rural health clinic (RHC) payment
Understand how CAH financial data are reported, analyzed, and acted upon
Describe what each of the most important CAH financial measures means, and how each affects the hospital’s overall financial performance
Explain the basic concepts of value-based payment for rural providers
Analyze a rural hospital’s financial performance over time and identify hospitals in financial crisis and in danger of closing
Understand the basic strategies for improving the financial performance of rural hospitals and clinics