Our market analysis for a county-owned critical access hospital showed the need to add space for rehabilitation therapy, imaging and emergency room services.
The market analysis also indicated that the utilization of the hospital's long-term care unit was declining; further, it was competing with the local nursing home for the same small and diminishing number of elderly residents.
It was also apparent that further decreases in the hospital's long-term care unit census would occur once the local nursing home developed assisted living units. These factors and circumstances raised the question about converting the long-term care unit to outpatient space.
The potential benefits of this option were underscored by a financial analysis that demonstrated Medicare reimbursement could increase by closing the long-term care unit. Thus, closing the long-term care unit would obviate the need to build an addition to the hospital, as well as alleviate financial pressure on the local nursing home.
