Too Small to Fail? Effects of Government Investment on the Efficiency of Rural Hospitals
Rural markets pose a unique challenge for hospital care delivery. Low population densities stand in conflict with hospital market features such as high fixed costs and variable demand. A core policy response to these issues has been to increase government investment in rural hospitals, but the effect of this increased spending is not well understood. Dr. Carroll’s research studies how public policy has shaped care provision in rural markets, with a particular focus on Medicare’s Critical Access Hospital (CAH) program, which allows rural hospitals to qualify for generous, cost-based reimbursements.