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The Value Surgical Services Bring to Critical Access Hospitals
Nathanael N Hoskins1, Marco A Cunicelli1, Wade Hopper2
1Surgery, Edward Via College of Osteopathic Medicine, Blacksburg, USA.
Cureus
|May 14, 2021
Summary
Offering more surgical services significantly increases net income for Critical Access Hospitals (CAHs). Expanding surgical services can enhance financial stability and predictability for these rural facilities.
Area of Science:
- Health Services Research
- Rural Health Economics
- Surgical Outcomes
Background:
- Critical Access Hospitals (CAHs) are vital for rural populations, often subsidized due to high costs and low occupancy.
- Surgical procedures constitute a significant portion of hospitalizations and revenue nationally.
- The financial contribution of surgical services to CAH viability requires detailed examination.
Purpose of the Study:
- To determine the financial value of surgical services offered by Critical Access Hospitals.
- To assess the impact of surgical service offerings on the overall viability of CAHs.
- To identify the relationship between surgical service expansion and hospital profitability.
Main Methods:
- Analysis of public data from the American Hospital Directory (AHD) for revenue and surgical services.
- Random selection of 300 CAHs using a 95% confidence interval and 5% margin of error.
- Linear regression models to evaluate the association between net income/total margin and the number of surgical services, adjusted for covariates.
Main Results:
- Each additional surgical service offered by a CAH correlated with a $630,528 increase in net income (p=0.0032).
- A positive trend was observed for total margin (0.73% increase per service), though not statistically significant (p=0.1342).
- CAHs offering 2-3 surgical services demonstrated less profit variance compared to those offering fewer or none.
Conclusions:
- Net income in CAHs is significantly correlated with the number of surgical services provided.
- Increased surgical service offerings appear to lead to more predictable financial performance in CAHs.
- Expanding surgical services presents a financially beneficial strategy for Critical Access Hospitals.
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