Question

In: Economics

What is critical access hospital ? why was this designation created

What is critical access hospital ?
why was this designation created

Solutions

Expert Solution

A Critical Access Hospital is one which is a small hospital in rural area serve residents that would have to otherwise travel a long distance from emergency care. They get aid under federal program as a part of Balanced Budget. CAHs receive certain benefits, such as cost-based reimbursement for Medicare services. Pharmaceutical companies are legally required to pay for a portion of the medications used by critical access hospitals as part of the 340B Drug Pricing Program.

Critical Access Hospitals must adhere to several guidelines. They may have no more than 25 beds and must have an average duration of hospital stay under 96 hours. They must also be more than 35 miles from another hospital, with exceptions allowed for areas with poor roads or difficult terrain. CAHs have more flexibility than other hospitals in staffing requirements. They must offer 24/7 emergency care and have a physician on-call available to be on-site within 60 minutes. They are required to have a Registered Nurse on site at all times when acutely ill patients are in the hospital. At other times, an LPN may fill in.

As of January 2018, there are 1,343 certified Critical Access Hospitals in 45 states. Connecticut, Delaware, Maryland, New Jersey and Rhode Island do not have any CAHs.

They are very aptly designated as "Critical Access Hospital" because they serve residents that would have to otherwise travel a long distance from emergency care. Critical Access Hospital is a designation given to eligible rural hospitals, or those grandfathered as rural, by the Centers for Medicare and Medicaid Services (CMS). The CAH designation is designed to reduce the financial vulnerability of rural hospitals and improve access to healthcare by keeping essential services in rural communities.


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