STATE LEGISLATION AND POLICY AFFECTING RURAL HOSPITAL CONVERSION AND CLOSURE

Many rural hospitals have closed or converted to organizations that pr ovide health services other than general, acute inpatient care. Howeve r, little is known about why rural hospitals convert rather than close . This study evaluates the relationship between state policy and rates gf rural hospital conversion relative to rates of rural hospital clos ure. The expectation was that the relationship among state policies an d rates of conversion and rates of closure differs as a function of wh ether a state policy facilitates rural hospital transition to alternat ive models of care or supports them in their existing form. National d ata mere analyzed for all rural hospitals from 1984 to 1991. Results i ndicate that state policies have done little to facilitate widespread adoption of conversion among rural hospitals. Despite these findings, results also indicate that some state policies have resulted in an inc rease in the rate of rural hospitals conversions as an alternative to closure.