Financial and operational improvements for critical access hospitals, State Office of Rural Health [July 2012]

The Georgia Department of Community Health, State Office of Rural Health
Financial and Operational Improvements for Critical Access Hospitals

The Medicare Rural Hospital Flexibility Program (Flex) was established by the Balanced Budget Act of 1997. This federally funded program of the Department of Health and Human Services promotes quality and performance improvement activities; stabilizes rural hospital finance; and integrates emergency medical services (EMS) into rural health care systems.
Financial and Operational Improvements
Nineteen percent ($99,990) of Flex funding for grant years 2007, 2008 and 2009 was appropriated to financial and operational improvement. Finances were analyzed for 32 of the state's 34 Critical Access Hospitals (CAH) by Draffin & Tucker LLP through three funding cycles. Problematic issues affecting financial stability were identified. CAH leadership education and training seminars and webinars were provided in 2010, 2011 and 2012 to educate CAHs on the following areas of opportunity:
Reimbursement
Cost reporting
Cost containment
Charge masters and charge captures
Networking
Leadership
Diversification
Health care reform
Following this extensive three-year audit, financial and operational improvements include:
Improved accuracy of billing and compliance
Updated charge masters to enhance reimbursement and compliance

Georgia Flex Quick Facts
Since 1999, Georgia has received more than $4.5 million in Flex grant funding.
Flex grants have supported the conversion and sustainability of 34 rural Georgia Critical Access Hospitals.
Georgia State Office of Rural Health 502 South 7th Street Cordele, GA 31015 Phone: 229-401-3090 Fax: 229-401-3077

Continued

Georgia Department of Community Health | 2 Peachtree Street NW, Atlanta, GA 30303 | www.dch.georgia.gov | 404-656-4507 July 2012

An Overview of and Operational Improvements for Critical Access Hospitals

Previous and current projects include:
Offered operational and finance-related technical and operational assistance
Conducted CAH financial feasibility and impact assessments for CAH-eligible hospitals
Performed CAH Program Evaluation
Developed and implemented the Georgia State Rural Health Plan
Provided education, training and benchmarking to each of the CAH business offices
Completed external evaluation of Georgia Flex Program, conducted by Rural Health Solutions

About Flex
The Georgia Flex Program, which began in 1999 through the State Office of Rural Health (SORH) in the Georgia Department of Community Health, supports the four components of the national program:
Quality Improvement
Financial and Operational Improvement
Health System Development and Community Engagement
Conversion of 34 hospitals to CAH Status -- Completed