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Published on: June 11, 2012
The variance of rural small-town hospitals' financial performance
Abstract:
The profitability of rural small-town hospitals varies widely. Some are consistently profitable; others generate significant losses. This Policy Brief provides insights into why some rural small-town hospitals are financially successful and others struggle with persistent financial difficulties. Our analysis of Medicare cost report data reveals that financial difficulties are most likely in hospitals with fewer than 1000 admissions. Interviews with hospital administrators at selected hospitals indicate that bad debts, poor physician relations, and broad missions also may contribute to some hospitals' financial difficulties.
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