Lake Chelan Community Hospital (LCCH) became a Critical Access Hospital in 2004? But what does that mean to the community?

Patients noticed few changes,hospital administrator Larry Peterson said, but there were many benefits to becoming a Critical Access Hospital, inlcuding a higher reimbursement rate from Medicare.

"This new program offered the hospital the potential to become more financially stable, helping to ensure the valley access to affordable, quality health care at home," he continued.

History of Critical Access Hospitals
When Congress made changes to the Medicare program in the mid 1980s and through the Balanced Budget Act of 1997, hospitals no longer recevied full reimbursement from Medicare. This affected smaller, rural hospitals like LCCH the most.

After the federal-level changes, LCCH was reimbursed only 64 cents for every dollar of cost for service to Medicare patients. About 45 percent of the hospital's funds come from Medicare and Medicaid.

When Congress recognized the financial burden the changes placed on smaller community hospitals, it created the Critical Access Hospital (CAH) Program. This program allows small, rural hospitals to receive a higher rate of reimbursement from Medicare. As a CAH, LCCH receives 100% of its actual costs from Medicare.

Lake Chelan Community Hospital first in nation
LCCH was the first hospital in the nation to become a CAH with a psychiatric unit, breaking ground for other small hospitals. It was the 33rd CAH in the state of Washington.

Critical Access Hospitals must provide inpatient care, emergency care, laboratory services and radiology services. LCCH will be held to higher standard than ever before, says Peterson.

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