Dozens of Facilities Predicted to Show Interest in Rural Emergency Hospital Model
November 1, 2022
By Dorothy Brooks
How many medical facilities will opt for the new REH model? Quite a few, according to an early analysis.1
George Pink, PhD, deputy director of the North Carolina Rural Health Research and Policy Analysis Center, says he and research colleagues used three measures to predict which hospitals might opt to convert: hospitals that operated three years with negative total margins, facilities that recorded an average acute and swing daily census of less than three, and centers running with net patient revenue of less than $20 million.
“Using these measures, 68 hospitals were predicted to consider conversion to [the REH model],” Pink reports.
Pink and colleagues noted the potential converters are predominantly located in four states: Kansas, Texas, Nebraska, and Oklahoma. However, most states included at least one hospital that met the criteria as likely to consider converting to an REH.
While Pink considers 68 to be a reasonable estimate of the number of potential converters, he notes the composition of the 68 is highly uncertain. He also makes no predictions on how the REH model will fare. “The proposed Conditions of Participation have just been issued by CMS, so it is too soon to assess whether the model will succeed,” he says.
There are other factors that will play into administrative decisions. For example, an REH cannot be a new build. The REH model is only available to smaller existing hospitals that meet the criteria and elect to convert.
Further, hospitals that convert must submit a plan that details all the services they intend to discontinue, modify, or add. Also, facilities must specify how they will use the additional funding to cover telemedicine, ambulance services, and other operations.
REFERENCE
1. Pink GH, Thompson KW, Howard HA, et al. How many hospitals might convert to a Rural Emergency Hospital (REH)? Findings brief: NC Rural Health Research Program. July 7, 2021.
Key targets are hospitals that operated three years with negative total margins, facilities that recorded an average acute and swing daily census of less than three, and centers running with net patient revenue of less than $20 million.
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