Critical Access (CAH)

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Prague Community Hospital is designated as a "Critical Access Hospital" by Medicare.

What is a Critical Access Hospital?

A Critical Access Hospital (CAH) is a hospital that is certified to receive cost-based reimbursement from Medicare. The reimbursement that CAHs receive is intended to improve their financial performance and thereby reduce hospital closures. Each hospital must review its own situation to determine if CAH status would be advantageous. CAHs are certified under a different set of Medicare Conditions of Participation (CoP) that are more flexible than the acute care hospital CoPs.

What are the benefits of being a Critical Access Hospital?

Some of the benefits of being a Critical Access Hospital include:
  • Cost-based reimbursement from Medicare, which has the potential to increase revenues. As of January 1, 2004, CAHs are eligible for cost plus 1% reimbursement.
  • Focus on community needs.
  • CAH network with an acute care hospital for support.
  • Flexible staffing and services, to the extent that state licensure laws permit.
  • Capital improvement costs included in allowable costs for determining Medicare reimbursement.
  • Access to Flex Program grant money.
 
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