Case Studies

A Turnaround Story: Southwest Health System

The Situation

When the Southwest Health System (SHS), in Cortez, Colorado, contacted Community Hospital Corporation (CHC) early in 2018, the hospital had violated various bond covenants associated with its $30 million expansion and renovation project. In fact, the organization had failed to meet the 80 days-cash-on-hand requirements for four consecutive quarters. This violation triggered technical default, which could have led to hospital bankruptcy
and closure.

Lenders concerned with the financial situation communicated with the board directly and required an outside consulting firm to evaluate the situation and develop a...



Overseeing Without Overstepping: The Board’s Role in Hospital Operations

To what degree should boards be involved in the finances and operations of their hospitals? This is an important question, because effective hospital boards are clear on their roles and responsibilities. That role is hospital governance while management is the responsibility of the hospital leadership team. That means board members must focus on strategy and leave operations to hospital leadership. Yet, it’s not only appropriate but also imperative that board members understand the finances and operations of their hospital.

That means board members must discern the financial situation; education about...


News Room

The Future of Rural Hospitals

How to remain relevant and sustainable by meeting challenges with change by Jim Kendrick, President & CEO, Community Hospital Corporation

At rural hospitals coast to coast, business practices that hospital leaders once counted on as tried-and-true are uncertain or unreliable. Today, a renaissance of fresh approaches and change is occurring. Since the landscape is so different for rural hospitals today, it’s time to consider innovative ways to serve communities. In this interview, Jim Kendrick, president and CEO of Community Hospital Corporation, urges rural hospital leaders to rethink community healthcare. His...


White Paper


Community Hospital 2.0

For years, community hospitals have been in crisis, with limited control over their situation. Could the next move be bold innovation? This white paper maps out possible paths forward including sustainable models of operation.



5 Ways Rural Hospitals Are Beating the Odds

Rural hospitals are critical to the communities they serve, but in many areas their role is changing. Demographics tell the story. Patients tend to be older, and many are uninsured. Populations are declining. The decreases result in fewer inpatient admissions, but they have not reduced the need for emergency care or primary care physicians. The U.S. Census Bureau reports that 20% of the U.S. population is rural, but only 12% of primary care physicians are working in rural areas — and their numbers per capita are declining.

All of these...


News Room

Hospital Financial Stress Indicators

Like dashboard warning lights, certain signs mean it’s time for a tune-up or overhaul by Jim Kendrick, President & CEO, Community Hospital Corporation

Unfortunately, thin margins have long been a reality for most rural hospitals, but a worsening array of issues—from decreasing reimbursements to declining populations—have forced growing numbers of them into financial distress. By monitoring indicators, creating transparency and responding swiftly to warning signals, financially stressed or distressed hospitals can get turned around before bankruptcy or closure become imminent threats. In this interview, Jim Kendrick, president and CEO of...



How to Improve Rural Healthcare Delivery

Rural and community hospitals are in a unique position to meet the healthcare needs of the communities they serve. They are also especially vulnerable to the types of challenges that significantly impact operations and long-term financial viability. To maintain or regain a position of strength, here are some tips for improving access to care and delivery of services.

Cater to Market Needs

Use market demographics and payer mix data to drive a strategic approach to new services and program offerings. These market-specific ideas have worked for CHC client hospitals:


Hospital Risk Management


Foundational Principles and Best Practices for Hospital Risk Management

When an effective hospital risk management program is in place, the most critical element—maintaining a culture focused on patient safety—is intangible. Safety culture is a shared belief among the entire hospital staff that safety is important, and a shared responsibility.

By definition, safety culture is part of organizational culture and is upheld by staff at all levels and in every department. Risk management is not just a clinical concern. Everyone contributes. Maintenance workers identify and remove trip hazards in and around the facility. Housekeeping plays a vital role in infection...



Three Ways Rural Hospitals Can Reverse Financial Distress

Thin margins have long been a reality for most rural hospitals, but a worsening array of issues—from increasing charity care and bad debt to declining reimbursements and rural populations—have forced growing numbers of them into financial distress. Despite today’s challenging operating environment, many rural hospitals across the country are using a practical approach to get turned around before bankruptcy or closure become imminent threats.


Know the signs and symptoms of declining financial health

Certain financial indicators are clear signs that “business as usual” isn’t working and course...



10 Ways to Improve Hospital Financial Performance Through Productivity Management

The transition to value-based care has required hospitals to improve patient experiences and outcomes, all at a lower cost. In this model, hospitals are responsible for the cost differential, so the urgency around hospital financial performance improvement has intensified. One of the biggest opportunities for hospitals is managing staff productivity, which means maintaining the right number and mix of all staff based on patient diagnoses and volume. Optimizing productivity is paramount because labor is usually the greatest expense for hospitals.

In CHC’s experience, almost every hospital has room to improve...