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Whitepaper: Financial Health of California CAHs
Focus on the Financial Condition of California's Critical Access Hospitals

California’s critical access hospitals (CAHs) are typically located in remote, rural parts of the state and frequently serve as the only provider of health care services in a community. Given their small size — no more than 25 acute care beds — the financial viability of CAHs can be affected by health care market changes such as shifts in population and demographics, payer mix, and workforce shortages.

This white paper and snapshot examine the financial health of California CAHs by looking at their performance over the past six years and comparing it with all of the state’s acute care hospitals on a number of measures. It also examines the before-and-after financial experience of hospitals that converted to CAH status in 2005.

Based on quantitative analyses as well as interviews, the authors identified five key factors that are strong determinants of financial performance for California CAHs.