Small hospitals struggle to adapt to new healthcare models

Shorter lengths of stay and failure to emphasize preventive and outpatient care will push some smaller hospitals out of the competitive market that was meant to strengthen the industry as a whole, according to EHR Intelligence. Hospitals from California to Pennsylvania struggle with readmission penalties, Medicare rate reductions and keeping inpatient rates up. Those factors are some of the reasons why 37-bed Palm Drive Hospital in California will close after declaring bankruptcy twice in the past seven years. Competition from larger health systems means smaller, independent hospitals must find a way to improve quality and cut costs, while adapting to changes in a new wave of healthcare reform, the publication reports. Article

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