SMH: Exploring Transition to Critical Access Hospital

Sheridan Memorial Hospital is exploring a transition to critical access hospital designation as the hospital looks to strengthen long-term financial sustainability while continuing to maintain the level of care they currently provide.

Sheridan Memorial Hospital Chief Medical Officer Dr. Sierra Gross and Chief Operating Officer Joe Wright appeared on Public Pulse to help explain what the transition to a critical access hospital (CAH) means and why it is taking place now. 

Hospital leaders say the move is being considered in response to changing reimbursement models and a growing share of patients covered by Medicare and other government programs, which now account for approximately 67% of payers.

Wright said under the current system, Medicare typically reimburses approximately 75% of the cost of care, creating ongoing financial pressure for rural hospitals. 

J. Wright 

Switching to a critical access designation would allow the hospital to be reimbursed based on cost rather than a fixed rate, which officials say could better align payments with expenses and support reinvestment in staff, services and technology.

Dr. Gross said SMH has spent two decades building a health care system for the region’s residents that would allow them to receive a multitude of services and leadership has no plans to reduce those services. She said the change would not reduce services, staffing or quality of care and would help ensure access to healthcare in Sheridan County moving forward.

Dr. S. Gross

Officials are holding a series of public meetings to provide an overview of what CAH designation means and why it is being considered.

These forums will take place beginning at 5:30 p.m., Monday, April 20, in SMH Conference Rooms A & B, 1401 W. 5th St. and 5:30 p.m., Tuesday, April 21, in SMH Conference Rooms A & B, 1401 W. 5th St.