• Need more information on these or other topics? Ask an information specialist at (312) 422-2050 or rc@aha.org

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 258 other followers

  • Share this blog

    Share |
  • Note:

    Information posted in this blog does not necessarily represent the views of the American Hospital Association
  • Archives

  • Categories

  • Top Posts

  • Top Rated Posts

FORECASTING: How to predict closure of rural hospitals

From January 2010 to December 2015, 63 rural hospitals closed, and over 1.7 million people are now at greater risk of negative health and economic hardship due to the loss of local acute care services.”

A model to predict financial distress and the risk of closure for rural hospitals is described in this scholarly article out of the Cecil G. Sheps Center for Health Services Research at the University of North Carolina.  The model was validated in that all of the selected financial performance indicators were found to be associated with the likelihood of hospital financial problems.  A surprise was that investor-owned rural hospitals were found to be more likely than expected to be in financial distress; although, this might be linked to their tendency to be located in southern states, which – as a region – are more likely to be struggling financially.

Source: Holmes, G.M., Kaufman, B.G., and Pink, G.H. (2017, Summer). Predicting financial distress and closure in rural hospitals. Journal of Rural Health, 33(3), 239-249.  Click here for access to the publisher’s website: http://onlinelibrary.wiley.com/doi/10.1111/jrh.12187/pdf  Posted by AHA Resource Center (312) 422-2050, rc@aha.org

 

How Many Hospitals Have Negative Margins?

Nearly a quarter [24%] of hospitals in the U.S. had negative total margins in fiscal year 2011, where total expenses exceeded total net revenue. Another 4.4% had negative operating margins. Over the past 20 years, the percentage of hospitals operating at a loss on total margin has fluctuated from a low of 19.4% in 1996 to highs over 32% in both 1999-2000 and again in 2008.

Source: Table 4.1: Aggregate total hospital margins, operating margins, and patient margins; Percentage of hospitals with negative total margins; and Aggregate non-operating gains as a percentage of total net revenue, 1991-2011. In: Trendwatch Chartbook 2013. American Hospital Association, Feb. 26, 2013. http://www.aha.org/research/reports/tw/chartbook/2013/table4-1.pdf  Chart: http://www.aha.org/research/reports/tw/chartbook/2013/chart4-1.pdf

Posted by AHA Resource Center, (312) 422-2050, rc@aha.org