The MCDH Board of Directors will be voting on the critical issue of Critical Access Hospital status for MCDH this week at the Board meeting on Thursday 4/27 at 6pm. The meeting is in the Redwoods Room of the hospital. A positive Board decision would be the first step toward turning around the hospital.  Please attend and add your support. 

The Planning Committee voted yesterday, 8 to 0, to recommend that MCDH become a Critical Access Hospital. 

If MCDH elects to become a Critical Access Hospital, it could add $1.5 million to the bottom line and make keeping the ambulance at the hospital a viable option.

The Mendocino Coast District Hospital (MCDH) is about to decide whether or not to elect "Critical Access Hospital" (CAH) status, which provides a variety of financial benefits to rural hospitals with a maximum of 25 beds.

An initial estimate made in July 2005 by consultants was that CAH conversion would provide $1.5 million in net benefits per year to MCDH.

The primary benefit is Medicare reimbursement of cost plus 1% for both inpatient and outpatient services to Medicare patients. CAH status can also provide special financing for capital improvements, reimbursement for construction costs of capital projects, higher reimbursement for physician services, and small non-competitive grants.

Electing CAH status is the only action, other than reducing operating costs, that MCDH can take that will bring near-term significant cost benefits. The hospital can start receiving CAH reimbursement within a few months of deciding to elect this status.

The hospital lost approximately $1.5 million in the first eight months of the current fiscal year (July 2005 through February 2006). Annualized to twelve months, the eight-month loss equals $2.3 million, as shown in the chart below.

The Hospital Resource Council has compiled information, presented in the documents below, that convincingly establish that Critical Access Hospital status is essential to the survival and ultimate thriving of Mendocino Coast District Hospital.

 Summary of evidence for CAH 112.14 Kb : a summary of evidence regarding CAH status

 Sec. 242 Mortgage Insurance Program 151.35 Kb : a remarkable funding program available to hospitals with CAH status