REH vs CAH — Financial Comparison

    Should You Convert Your CAH
    to a Rural Emergency Hospital?

    A live, side-by-side calculator built for hospital CEOs and CFOs evaluating REH designation. Adjust your volume, payer mix, and rates — see the monthly and annual revenue swing instantly.

    Self-assessment

    Questions to ask yourself

    Walk through these eight quick questions. Answer honestly — there are no wrong answers, just a clearer picture of which path fits your hospital.

    Question 1 of 80%
    Operational

    How much of your revenue currently comes from inpatient admissions?

    REH vs. CAH financial calculatorin beta

    Enter your numbers below to see a side-by-side comparison.

    All non-REH inputs are blank

    Toggle to prefill volume and reimbursement rates with reasonable rural averages.

    Leave blankUse defaults

    Monthly Volume

    %

    Industry range: 8–15%

    %

    Typical rural ED: 5–8%

    CAH only — enter swing bed days, not patients. Leave blank if not applicable.

    Reimbursement Rates (Facility Fee — Medicare Blend)

    $

    OPPS APC blend; rural avg $700–$950

    $

    APC 8011 + G0378; avg $1,800–$2,800

    $

    CAH only; 101% of cost; avg $5,500–$8,000

    $

    CAH only; Medicare avg $450–$600/day

    REH Parameters

    $

    CY2025: $285,625.90 — indexed annually to hospital market basket

    %

    REH receives OPPS + this % on all qualifying outpatient/ED/OBS services (42 CFR §419)

    For informational purposes only. Verify rates against your payer mix and current CMS fee schedules.

    What the Research Says

    Only 3.3% of eligible hospitals have converted.
    We read the data differently.

    A April 2026 JAMA Network Open study found that only 42 of 1,270 eligible rural hospitals (3.3%) had converted to REH by December 2025 — and most that did were already in deep financial distress (operating margins of −17.2%).

    The researchers framed this as evidence that REH is a last resort.

    Our read: the hospitals waiting until they're bleeding out are the ones converting. The hospitals running the numbers earlier are finding the math works long before crisis hits.

    Source: Characteristics of Hospitals Converting to Rural Emergency Hospital Designation, JAMA Network Open (2026)

    Profile of the 42 hospitals that converted

    Use these as benchmarks when evaluating your own numbers.

    BenchmarkREH converters (avg)Non-converters (avg)
    Operating margin−17.2%−8.0%
    Total margin−5.7%+0.9%
    Total annual revenue~$22M—
    Annual ED visits~4,200—
    Annual outpatient visits~20,500—
    Bed size: 25–50 beds50%—
    Located in the South68.4%29.0%
    Non-CAH (rural PPS) hospitals52.6%14.3%

    The same JAMA study notes: "without further action, rural hospitals are likely to continue struggling financially, which may lead to more hospitals pursuing REH." Even the researchers expect adoption to accelerate.