
Critical Access Hospitals (CAHs) are small hospitals located in rural areas that serve patients enrolled in Medicare. These hospitals are designated as such due to their distance from other medical facilities, with criteria including being more than a 35-mile drive on primary roads from another hospital. As of my last update in January 2023, there are 39 CAHs in the state of Washington. In this paragraph, we will explore the number and distribution of critical access hospitals in Washington and discuss their role in providing healthcare services to rural communities in the state.
| Characteristics | Values |
|---|---|
| Number of Critical Access Hospitals (CAHs) in Washington | 39 |
| Location | Rural areas |
| Distance from other hospitals | More than a 35-mile drive on primary roads, or more than a 15-mile drive in mountainous areas or areas with only secondary roads |
| Number of beds | Fewer than 25 |
| Average length of stay for acute care patients | 96 hours or less |
| Services provided | Primary care, long-term care, physical and occupational therapy, cardiac rehabilitation, and others |
| Funding | Medicare reimbursement and payment benefits |
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What You'll Learn

Critical Access Hospital locations are tracked by the Flex Monitoring Team
Critical Access Hospitals (CAHs) are located in 45 states across the U.S., and their locations are tracked and regularly updated by the Flex Monitoring Team (FMT). The FMT provides a list of CAHs with the most current data based on CMS reports, information from state Flex Coordinators, and data collected by the North Carolina Rural Health Research Program on hospital closures. This data is used to support CAHs in quality improvement activities and facilitate the development of rural systems of care.
The FMT offers comprehensive information on the financial condition of CAHs, aiming to improve hospital financial performance and access to quality healthcare in rural communities. They also produce state- and CAH-level reports of MBQIP measures for State Flex Programs (SFPs) and CAHs. Additionally, the FMT makes financial indicator data available to every CAH in the United States on an annual basis.
The FMT's website provides resources related to the CAH Quality Inventory & Assessment for SFPs. These resources include descriptions and links to various materials, such as a Data Summary Report presenting state and national median values of financial indicators, and the Critical Access Hospital Measurement and Performance Assessment System (CAHMPAS), a tool for evaluating CAHs' performance on financial and quality measures.
By tracking CAH locations and providing relevant data and resources, the FMT plays a crucial role in supporting and improving the performance of CAHs across the country. This, in turn, helps enhance the accessibility and quality of healthcare services in rural areas. The FMT's efforts are particularly significant in addressing the challenges faced by rural communities, including hospital closures and healthcare workforce recruitment and retention issues.
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CAHs must be in rural areas and meet specific distance criteria
Critical Access Hospitals (CAHs) are small hospitals with fewer than 25 beds that are located in rural areas. These hospitals are often the central hub of health services in their communities, providing primary care, long-term care, physical and occupational therapy, and cardiac rehabilitation, among other services. To qualify as a CAH, a hospital must be located in a rural area, which is defined by the Office of Management and Budget (OMB) as any area outside of a Metropolitan Statistical Area or is treated as rural by the Centers for Medicare & Medicaid Services (CMS).
In addition to being located in a rural area, CAHs must also meet specific distance criteria. They must be more than a 35-mile drive on primary roads from another hospital or more than a 15-mile drive from another hospital in an area with mountainous terrain or only secondary roads. These distance requirements ensure that CAHs are accessible to those in rural areas who may not have easy access to other hospitals. However, CAHs designated by their state as a Necessary Provider prior to January 1, 2006, are exempt from these distance requirements but must still meet the rural location criteria.
In Washington state, there are 39 CAHs that meet these criteria and serve the rural communities across the state. The Washington State Flex Program collaborates with state and national partners to bring resources and targeted programs to CAHs and other healthcare facilities in rural areas. The program encourages the development of cooperative systems of care, joining CAHs with emergency medical service (EMS) providers, clinics, and health practitioners to increase efficiency and quality of care.
The Flex Monitoring Team tracks and regularly updates CAH locations across the United States, providing a valuable resource for those seeking information on these critical healthcare providers in rural areas.
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CAH status doesn't guarantee better finances
Critical Access Hospitals (CAHs) are located across 45 states in the US, and they are designed to reduce the financial vulnerability of rural hospitals. CAHs receive benefits such as cost-based reimbursement for Medicare services, and government grants and contributions. However, CAH status does not guarantee better finances.
CAHs are a new class of Medicare providers, introduced through the Medicare Rural Hospital Flexibility Program (Flex Program) as part of the Balanced Budget Act (BBA) of 1997. The program is intended to protect small, financially vulnerable facilities that are essential for protecting access to healthcare in rural communities. However, CAHs are among the most financially at-risk hospitals in rural America.
A study of facilities converting to CAH status from 1998-2000 found that their financial ratios were substantially worse than other small hospitals, and 89% of new CAH converters reported negative operating margins during FY 1998. More than 38% of CAHs have negative operating margins, according to an American Hospital Association infographic. Medicare pays CAHs 1% above the cost of providing care, but revenues from other payers often do not cover costs. On average, over 60% of CAH revenue comes from government payers, making them highly vulnerable to any payment reductions by Medicare or Medicaid.
Some hospitals have closed even after converting to CAH status. CAH status should be considered or maintained only if it is appropriate for the community's needs and the hospital's service area. CAH status does not necessarily mean fewer services are offered compared to other facilities, and services offered by a CAH should meet the community's unique needs. While CAH status can provide benefits such as cost-based reimbursement and access to external sources of support, it does not guarantee improved financial performance. The financial success of a CAH depends on a variety of factors, including efficient operations, reimbursement capture, and affiliation, payer mix, physician employment, and population health.
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The Washington State Flex Program supports CAH development
The Washington State Flex Program supports the development of Critical Access Hospitals (CAHs) in several ways. Firstly, it encourages the development of cooperative systems of care in rural areas, bringing together CAHs, emergency medical service (EMS) providers, clinics, and health practitioners to increase efficiency and enhance the quality of care. This collaborative approach ensures that rural citizens receive high-quality and appropriate healthcare services within their communities.
One of the key focuses of the Washington State Flex Program is to improve and sustain the quality of care provided by CAHs. This includes supporting CAHs in comparing their data with other hospitals and partnering to implement quality improvement initiatives. Through the Medicare Rural Hospital Flexibility (Flex) Program, established by the Balanced Budget Act of 1997 and funded by the Federal Office of Rural Health Policy (FORHP), the state program receives resources for creating rural networks and improving access to hospitals for rural residents.
The Washington State Flex Program also addresses community needs and promotes population health assessment and improvement. It awards funding to CAHs for community collaboration projects that aim to improve the social drivers of health. By analyzing community health needs assessments, the program identifies prioritized community needs and develops focused improvement cohorts. This community-centric approach ensures that healthcare services are tailored to meet the specific needs of Washington's rural populations.
Additionally, the Washington State Flex Program supports CAHs in improving their financial and operational performance. This includes providing technical assistance to CAHs, helping them navigate the unique Medicare and Medicaid reimbursement structures for CAHs. Unlike larger, urban hospitals, CAHs are reimbursed based on reasonable costs rather than a set amount per diagnosis or procedure. This flexibility in payment structures is essential for the financial sustainability of rural hospitals.
The Washington State Flex Program plays a crucial role in strengthening the state's rural healthcare infrastructure by supporting the development and improvement of CAHs. Through collaborative initiatives, quality improvement, community engagement, and financial enhancements, the program ensures that residents in Washington's rural areas have access to high-quality healthcare services. These efforts are vital in addressing the unique challenges faced by rural communities and bridging the healthcare gap between urban and rural populations.
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CAHs in Washington have fewer than 25 beds
Critical Access Hospitals (CAHs) are located in 45 states across the US. These hospitals are small, with fewer than 25 beds, and are situated in rural areas. CAHs in Washington meet these criteria, with 39 such hospitals in the state.
CAHs are defined by their location in rural areas, as well as their distance from other hospitals. Specifically, they must be more than a 35-mile drive on primary roads or more than a 15-mile drive on secondary roads or in mountainous terrain from another hospital. These hospitals are often the central hub of health services in their communities, providing a range of services, including primary care, long-term care, and therapy services.
The Washington State Flex Program supports CAHs, along with emergency medical service providers, clinics, and health practitioners, to improve the efficiency and quality of care in rural areas. This program is administered by the federal Office of Rural Health Policy, ensuring that people enrolled in Medicare have access to healthcare services in these regions.
To be eligible for certain awards and programs, hospitals in Washington must be non-Federal, general acute care facilities with fewer than 50 beds, and located in rural areas of the state. CAHs in Washington, with their small size and rural location, meet these requirements and can benefit from these additional resources and support.
In summary, CAHs in Washington have fewer than 25 beds and are an essential part of the state's healthcare system, particularly in rural communities. These hospitals collaborate with other healthcare providers and receive support from programs like the Washington State Flex Program to ensure access to quality healthcare services for people living in rural Washington.
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Frequently asked questions
There are 39 Critical Access Hospitals (CAHs) in Washington state.
Critical Access Hospitals are small hospitals with fewer than 25 beds that are located in rural areas. CAHs are often the central hub of health services in their communities, providing primary care, long-term care, physical and occupational therapy, cardiac rehabilitation, and other services.
Critical Access Hospitals are located in 45 states across the US. They must be located outside of Metropolitan Statistical Areas as outlined by the Office of Management and Budget (OMB) or be treated as rural by the Centers for Medicare & Medicaid Services (CMS). CAHs must also meet specific distance criteria, such as being more than a 35-mile drive on primary roads from another hospital.










































