This brief presents a model to predict the financial distress of CAHs, which will be further refined based on input from researchers, practitioners, and CAH administrators.

Key Findings 

• The model separates hospitals into risk of financial distress categories; hospitals in the highest risk category had up to 15 times the rate of financial distress events as hospitals in the lowest category.
• Risk of financial distress categories can provide an effective early warning system for CAH boards and administrators as well as enable state program directors to prioritize resources more effectively.