Determinants of Cost Inefficiency of Critical Access Hospitals: A Two-stage, Semi-parametric Approach

This study examines, post-conversion, cost inefficiency of Critical Access Hospitals (CAH) using a two-stage approach. While the results suggest that Medicare cost-based reimbursement and longer participation in the CAH program may increase the cost inefficiency of CAHs, the extent of this inefficiency increase is lower than what previous literature showed.