Avera Queen of Peace Hospital in Mitchell, S.D., changed its designation to a critical access hospital, Dakota News Now reported March 30.
Previously, the hospital was a prospective payment system hospital. No services will be discontinued as a result of the change, according to the health system.
"I appreciate the great deal of work our team did to request this change, because it will better cover the costs for the care we provide," Doug Ekeren, regional president and CEO of Avera Queen of Peace Hospital, told Dakota News Now. "Approximately half of United States hospitals finished 2022 with a negative margin as growth in expenses outpaced revenue increases. In light of trends like that, we need to be creative and focus on our financial health so that Avera Queen of Peace can continue to serve Mitchell and the surrounding area. Being a CAH provides a better fiscal foundation upon which we can continue to build our services."