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Rural Emergency Hospital Conversion

The federal government established the rural emergency hospital (REH) designation in January 2023. This is a new Medicare provider program created to improve hospital sustainability and offer greater patient access to healthcare services.

The designation does carry significant requirements including service limitations, reduced staffing needs and potential revenue losses. Because hospitals must eliminate inpatient services, the community may not respond positively to a hospital’s transition to REH status.

Hospital leaders and other stakeholders must weigh the pros and cons of an REH conversion when deciding whether to choose this care-delivery model.

CHC has experience in navigating a rural hospital through REH conversion. The process can be complex and cumbersome without a resource like CHC and our partners.

Benefits

  • Increases patient access to healthcare services 
  • Improves the performance of rural hospitals facing challenges to their operations. 
  • Provides hospitals a premium on outpatient billings of 5 percent, or a reimbursement of 105 percent instead of 100 percent. 
  • Allows a fixed monthly payment of $276,234, called Additional Facility Payment (AFP).

White Paper

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Rural Emergency Hospital

To help mitigate their financial and operational challenges faced by many rural and community hospitals, the federal government established the rural emergency hospital (REH) designation in January 2023. This white paper explores the role of REHs, various trends impacting this model, implications of REHs, and key considerations involved in REH conversions.

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Contact CHC today to help assess your hospital’s alternatives to achieve sustainability in a challenging environment.

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