Rural Hospitals: Navigating Your Path to Success

More than ever, rural hospitals must focus their resources on a narrow path to success.  Today, there is no margin for error when it comes to prioritizing rural hospital strategic initiatives and capital expenditures.

In recent years, rural hospitals have faced a unique set of challenges relative to their urban counterparts.  For 2016, up to 673 hospitals were identified as at risk of closing, following a record closure rate in 2015, which was six times higher than that of 2010, according to the National Rural Health Association (NRHA).  The NRHA also reports more than 35% of rural hospitals are operating at a financial loss, which is troubling as rural hospitals often represent 20% of a community’s employment and income.

Because they vary in size, structure, affiliation status, and type of community served, each rural hospital needs to develop its own unique pathway to success.  Some have chosen to operate independently, while others have aligned with larger health systems.  Some have opted for more favorable payment structures by seeking designations such as critical access hospital, sole community hospital, or disproportionate share hospital.

Regardless of its current financial stability, a hospital must make strategic decisions that will positively impact its future success.  PYA has developed several tactical models for “pathways to success” (as depicted at a high level in the graphic below) to help rural hospital leadership identify priorities and determine the path forward.

rural hospitals

How we can help:

PYA has significant experience helping organizations achieve their desired financial outcomes.  Through education and guidance, PYA can help your organization design a plan and explore the best viable options for implementing it.  From service line or medical staff development to revenue cycle improvement and expense reduction to assistance defining your roll within a larger system, PYA’s multidisciplinary team can assist your organization as it implements financially sustainable options to meet critical community needs.

If you have questions about strategic positioning for rural hospitals, or would like to request a speaker on this topic for your organization or event, contact one of our executives below, (800) 270-9629.


Scott Clay

Scott Clay

Principal

David McMillan

David McMillan

Principal

Related Posts
PYA is pleased to announce the promotions of Michael Ramey, Matt Stuart, and Jeff Pate to the level of Equity Principal. PYA has announced the promotion of Senior Manager Michael...
Read More

PYA Announces Three New Equity Principals

PYA Principal Bob Paskowski is charting risk-contracting territory in an article published in the December issue of hfm Magazine, a publication of the Healthcare Financial Management Association (HFMA). Included in...
Read More

Charting Success: Key Risk-Contracting Provisions

PYA Healthcare Consulting Manager Kathryn Culver authored an article, “Changing Landscape for Health Lawyers,” which was recently published in Connections magazine, a monthly publication of the American Health Lawyers Association...
Read More

“Changing Landscape for Health Lawyers”

A recent article in DecisionHealth’s Part B News provides a glimpse into the future of charting patient encounters and the changes that will occur regarding Evaluation and Management (E/M) documentation....
Read More

PYA Thought Leader Quoted in Article Highlighting Potential Changes to E/M Documentation and Reporting

PYA made significant contributions to the recently released “BVR/AHLA Guide to Valuing Physician Compensation and Healthcare Service Arrangements,” which serves as the definitive guide for healthcare organizations seeking to understand...
Read More

PYA Lends Expertise in Premier Industry Publication for Valuing Physician Compensation and Healthcare Service Arrangements

Gaining a deeper understanding of the legalities associated with academic medical centers (AMCs) and other teaching hospitals will be the focus this winter at the American Health Lawyers Association (AHLA)...
Read More

PYA Supports AHLA Programming for AMCs and Teaching Hospitals

PYA Senior Manager Valerie Rock authored an article, “New Payment Review Strategies: What to Do If You Receive an Outlier Coding Notice,” which was recently published in Medical Economics magazine....
Read More

“New Payment Review Strategies: What to Do If You Receive an Outlier Coding Notice”

As compliance regulations and laws evolve and increase in number, many organizations – hospitals, home health agencies, skilled nursing facilities, physician practices, and third-party medical billing companies, among others –...
Read More
compliance risk assessments

Compliance Risk Assessments: The Foundation of Effective Compliance Programs

PYA Principal Martie Ross and Consulting Senior Manager Graham Fox were recently featured in an article, “Catching Up on Your MIPS Strategy” published by the Healthcare Financial Management Association (HFMA)....
Read More

PYA Thought Leaders Featured in MIPS Strategy Article

Share This Insight

If you received value from this article, please share it with your network (e.g., Facebook, Twitter, LinkedIn). Icons below for your convenience.

Stay Current

* indicates required
Monthly eNewsletters
See more newsletter and alert options.

PYA Population Health Ascend

PYA Healthcare Blog

PYA Thought Leadership Services

The Healthcare Loop