SMALL HOSPITALS WITH POSITIVE CASH FLOW - WHY ARE THEY WINNERS

This study evaluates the cash flow performance of hospitals that are a t a greater risk of closure, specifically small hospitals. Sampling th e majority of small acute-care hospitals in the United States, the stu dy evaluates urban and rural small hospitals with positive cash flows for four consecutive fiscal periods and compares them with urban and r ural hospitals with consecutive negative cash flows. In both urban and rural settings, positive cash flow small hospitals operate under a no t-for-profit form of ownership and have lower operating costs, a faste r collection of receivables. They also own newer, larger facilities, p ossess a Medicare higher case mix index, and offer more services in ma rkets with lower per capita income.