For immediate release: March 14, 2005

For more information contact:

Lori L. Henshey

Communications Specialist

West Virginia Hospital Association

304/353-9747

Fax: 304/344-9745

Lhenshey@wvha.org

WEST VIRGINIA HOSPITAL ASSOCIATION ANNOUNCES FORMATION OF CRITICAL ACCESS HOSPITAL NETWORK

CHARLESTON, WV – The West Virginia Hospital Association (WVHA) is pleased to announce the formation of the WVHA Critical Access Hospital (CAH) Network and the appointment of its first set of officers. The purpose of the 18-member Network is to promote a collaborative approach for improving patient care while optimizing shared resources.

The newly established Network will work together to share resources, access technical assistance, improve performance and quality of care, promote economies of scale, and improve access to healthcare in rural West Virginia.

Steven J. Summer, WVHA President and CEO, in announcing formation of the Network, said, “This is an important event and it represents a commitment by the members of the Network to come together for the betterment of healthcare services in rural communities throughout the state. These hospitals see the enormous value in working in a collaborative arrangement and, in doing so, the citizens in their communities will gain great benefit. The WVHA congratulates the members on this initiative.”

A CAH is a hospital that is certified to receive cost-based reimbursement from Medicare. The reimbursement that CAHs receive is intended to improve their financial performance and thereby reduce the need to limit access to care due to the closure of facilities or services.

To be designated as a CAH, hospitals must be located in a rural area and meet one of the following requirements:

• Be over 35 miles away from another hospital, or
• Be 15 miles from another hospital in mountainous terrain or areas with only secondary roads, or
• Be state-certified as a necessary provider of healthcare services to residents in the area. As of January 1, 2006, states will no longer have authority to waive the 35-mile rule, due to a provision of the 2003 Medicare Prescription Drug, Improvement and Modernization Act.

CAH hospitals are authorized under the Medicare Rural Hospital Flexibility Program, which provides special payment and benefits for low volume hospitals in rural areas. In West Virginia, CAH hospitals receive technical assistance and federal funding support through the West Virginia Bureau of Public Health Division of Rural Health Services, in partnership with the WVHA.

The members of the CAH Network recently elected the following members of the Executive Committee:

• Chairman: Barbara Lay, Administrator, Minnie Hamilton Health Care Center
• Vice-Chairman: Doug Bentz, CEO, Roane General Hospital
• At-large members: Steve Gavalchik, CEO, Webster Memorial Hospital; Tommy Mullins, Administrator, Boone Memorial Hospital; and Jeff Powelson, CEO, Broaddus Hospital.

“We’re excited,” said Chairman Barbara Lay, “that the CAH hospitals are able to work together in such a collaborative effort. The Network provides us with a mechanism to address issues specific to the CAH program, such as peer review, benchmarking and patient safety. Through the establishment of the CAH Network, we hope to become stronger in retaining our essential services and having an economic impact on the rural communities we serve.”

The WVHA, an association for hospitals and health systems, is a not-for-profit statewide organization representing 74 acute and specialty hospitals and health systems across the continuum of care. The WVHA supports its members in achieving a strong, healthy West Virginia by providing leadership in healthcare advocacy, education, information and technical assistance, and by being a catalyst for effective change through collaboration, consensus building and a focus on desired outcomes.