The REH model represents a significant shift in rural healthcare delivery. Our latest Learning Brief offers valuable insights on the challenges and successes of REH conversion from rural CEOs who have navigated the transition. By sharing these real-world experiences, we aim to help rural hospital leaders make decisions that best serve their communities’ needs. Here are key highlights from conversations with three rural CEOs who chose conversion:
Facing Financial Hardship. All three hospitals were experiencing financial instability before conversion. Kevin O’Brien of Harper County Hospital told us, “We haven’t made money in ten years.” Aaron Herbel from Mercy Hospital in Kansas saw inpatient care’s contribution to their net patient revenue plummet from 65% to 34% in just six years. For Bob Moore at Helena Regional Medical Center, REH conversion was “the only mode to survival.”
Data-Driven Decision Making. The CEOs relied heavily on data and financial models provided by the RHRC’s REH Technical Assistance Center. This approach helped them assess potential benefits and guided communications with stakeholders.
Community Communication Was Key. Despite outreach efforts, the CEOs faced difficulties in helping their communities understand the conversion. Rumors of hospital closures and fears of substandard care were common. Increased advertising and communication efforts became crucial in addressing these misconceptions.
Service Adjustments & Staffing Changes. While inpatient care ceased, the hospitals maintained essential services and explored new outpatient offerings. Staffing adjustments were necessary.
Financial Security Post Conversion. All three hospitals have seen positive results from their conversion. O’Brien reported, “We have made money every month since the change except one and we’ve never done that before.” For Helena Regional, the conversion allowed them to stay open long enough to find a new operator.
Ongoing Challenges. The CEOs shared continued challenges and suggested legislative changes to enhance the REH model’s viability.
At the RHRC, we believe in presenting a comprehensive view of the REH conversion process. These stories highlight successes and underscore the complexities and ongoing challenges of REH conversion. Our role as the REH Technical Assistance Center, is to provide rural hospitals with the tools, data, and support needed to make informed decisions about their future.
For those considering REH conversion or seeking more information, we encourage you to read the full 2024 Learning Brief here. It offers deeper insights into each hospital’s journey, and their recommendations for policy improvements.
For more information or support with REH conversion assessment, please contact our REH Technical Assistance Center at REHSupport@rhrco.org.
The REH Technical Assistance Center is funded by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services, Grant #UR347053. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by HRSA, HHS, or the U.S. Government. For more information, please visit HRSA.gov.
