AMH has critical access status

Alleghany Memorial Hospital has officially received designation as a Critical Access Hospital (CAH) under the Medicare Rural Hospital Flexibility Program.

AMH has received new billing numbers, which are retroactive to February 1.

The CAH designation will now allow AMH to receive ‘cost-based’ reimbursement for Medicare and Medicaid patients. In addition, AMH is recognized by the state as a “necessary provider” in Alleghany County, which is considered an isolated mountainous area.

The complete conversion from the former Medicare and Medicaid designation PPS (Prospective Payment System) to the new CAH designation was not completed until early March, said Ralph Castillo, chief financial officer for AMH.

The move was made with the cooperation of the N.C. Office of Research, Demonstrations and Rural Health Development, which funded a financial feasibility study of AMH converting to critical access status. After the results of that study were favorable, the state helped AMH pursue the designation.

Cost-based reimbursement has not been received by AMH since 1999, when the federal government initiated changes through the Balanced Budget Act. AMH just recently qualified for this program and becomes the 22nd CAH-designated facility in North Carolina. There are slightly more than 1,000 CAH facilities in the United States.

“Critical Access Designation is a key factor in maintaining the long-term viability of our hospital,” said Kevin W. Harlan, AMH’s chief executive officer. “This program, added to the changes we initiated for our current fiscal year, will allow us to further concentrate on 70 percent of our business, the Medicare and Medicaid populations.”

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