This paper examined cost efficiency differences between rural hospitals participating in the Critical Access Hospital (CAH) Program and a group of non-converting, prospectively paid rural hospitals using both a two-stage semi-parametric approach as well as stochastic frontier analysis (SFA)....

This study used a stochastic frontier cost model to analyze whether the policy changes that created Critical Access Hospitals (CAHs) caused an increase in the cost inefficiency of these hospitals or their cost inefficiency was brought about by other factors that were similar to all rural...

This study examines, post-conversion, cost inefficiency of Critical Access Hospitals (CAH) using a two-stage approach. While the results suggest that Medicare cost-based reimbursement and longer participation in the CAH program may increase the cost inefficiency of CAHs, the extent of this...