21 hospital closures in 2020

From reimbursement landscape challenges to dwindling patient volumes, many factors lead hospitals to shut down. In recent months, financial damage linked to the COVID-19 pandemic has put many hospitals in a fragile financial position and forced a few to close. 

Below are 21 hospitals that have closed since Jan. 1. 

Alabama
1. Carrollton, Ala.-based Pickens County Medical Center closed March 6. Hospital leaders said the closure was attributable to the hospital's unsustainable financial position. A news release announcing the closure specifically cited reduced federal funding, lower reimbursement from commercial payers and declining patient visits.

California
2. Los Angeles-based St. Vincent Medical Center closed in January, roughly three weeks after El Segundo, Calif.-based Verity Health announced plans to shut down the 366-bed hospital. Verity, a nonprofit health system that entered Chapter 11 bankruptcy in 2018, shut down St. Vincent after a deal to sell four of its hospitals fell through. In April, Patrick Soon-Shiong, MD, the billionaire owner of the Los Angeles Times, purchased St. Vincent out of bankruptcy for $135 million. 

Florida
3. Shands Lake Shore Regional Medical Center in Lake City, Fla, closed Aug. 31. The hospital, owned by the Lake Shore Hospital Authority, announced in July that it was closing. The hospital said it had to borrow money to maintain operations, and declining patient volume and financial challenges resulted in losses that were unsustainable. 

Georgia
4. Southwest Georgia Regional Medical Center in Cuthbert closed Oct. 22. The 25-bed critical access hospital announced plans in July to close. The hospital closed due to financial strain worsened by the COVID-19 pandemic. 

5. Northridge Medical Center, a 90-bed hospital in Commerce, Ga., closed Oct. 31. The hospital closed less than seven years after opening its doors on Jan. 1, 2014. It cited a decline in patient volume as the reason for the closure. Hospital leaders said all other options were explored before deciding to shut down Northridge Medical Center. 

Kansas
6. Sumner Community Hospital in Wellington, Kan., closed March 12 without providing notice to employees or the local community. Kansas City, Mo.-based Rural Hospital Group, which acquired the hospital in 2018, cited financial difficulties and lack of support from local physicians as reasons for the closure. "Lack of support from the local medical community was the primary reason we are having to close the hospital," RHG said. "We regret having to make this decision; however, despite operating the hospital in the most fiscally responsible manner possible, we simply could not overcome the divide that has existed from the time we purchased the hospital until today." 

7. Overland Park, Kan.-based Pinnacle Healthcare System and its hospitals in Missouri and Kansas filed for Chapter 11 bankruptcy on Feb. 12. Pinnacle Regional Hospital in Overland Park, formerly called Blue Valley Hospital, closed about two months after entering bankruptcy. 

Kentucky
8. Bon Secours Mercy Health closed Our Lady of Bellefonte Hospital in Ashland, Ky., on April 30. The 214-bed hospital was originally slated to shut down in September of this year, but the timeline was moved up after employees began accepting new jobs or tendering resignations. Bon Secours cited local competition as one reason for the hospital closure. Despite efforts to help sustain hospital operations, Bon Secours was unable to "effectively operate in an environment that has multiple acute care facilities competing for the same patients, providers and services," the health system said. 

Minnesota
9. Mayo Clinic Health System closed its hospital in Springfield, Minn., on March 1. Mayo announced plans in December 2019 to close the hospital and its clinics in Springfield and Lamberton, Minn. At that time, James Hebl, MD, regional vice president of Mayo Clinic Health System, said the facilities faced staffing challenges, dwindling patient volumes and other issues. The hospital in Springfield is one of eight hospitals within a less than 40-mile radius, which has led to declining admissions and low use of the emergency department, Dr. Hebl said.

Missouri
10. Pinnacle Regional Hospital in Boonville, Mo., formerly known as Cooper County Memorial Hospital, abruptly closed in January. It entered Chapter 11 bankruptcy about a month after it shut down. 

Ohio
11. The Medical Center at Elizabeth Place, a 12-bed hospital owned by physicians in Dayton, Ohio, closed March 5. The closure came after years of financial problems. In January 2019, the Medical Center at Elizabeth Place lost its certification as a hospital, meaning it couldn't bill Medicare or Medicaid for services. Sixty to 65 percent of the hospital's patients were covered through the federal programs.

Pennsylvania
12. UPMC Susquehanna Sunbury (Pa.) closed March 31. Pittsburgh-based UPMC announced plans in December 2019 to close the rural hospital, citing dwindling patient volumes. Sunbury's population was 9,905 at the 2010 census, down more than 6 percent from 10 years earlier. Though the hospital officially closed its doors in March, it shut down its emergency department and ended inpatient services Jan. 31. 

13. Ellwood City (Pa.) Medical Center officially closed Jan. 31. The hospital was operating under a provisional license in November 2019 when the Pennsylvania Department of Health ordered it to suspend inpatient and emergency services due to serious violations, including failure to pay employees and the inability to offer surgical services. The hospital's owner, Americore Health, suspended all clinical services at Ellwood City Medical Center Dec. 10, 2019. At that time, hospital officials said they hoped to reopen the facility in January. Plans to reopen were halted Jan. 3 after the health department conducted an onsite inspection and determined the hospital "had not shown its suitability to resume providing any health care services."

Tennessee
14. Cumberland River Hospital in Celina, Tenn., closed Aug. 7 and placed its license on inactive status. In a letter to the state health department, the hospital's owner and CEO Johnny Presley cited several reasons for the closure, including severe staffing shortages and the inability to secure financial funding or grants from the state. Mr. Presley later said the main cause of the closure was the local EMS not bringing patients to the hospital. 

15. Parsons, Tenn.-based Decatur County General Hospital closed April 15, a few weeks after the local hospital board voted to shut it down. Decatur County Mayor Mike Creasy said the closure was attributable to a few factors, including rising costs, Tennessee's lack of Medicaid expansion and broader financial challenges facing the rural healthcare system in the U.S. 

Texas
16. First Texas Hospital Cy-Fair, a 50-bed hospital in Houston, closed July 26, less than four years after opening. Irving, Texas-based Adeptus Health opened First Texas Hospital Cy-Fair in 2016. When the hospital shut down, 62 workers were laid off, according to the Houston Chronicle, which cited a federally required notice filed in late May.

17. Central Hospital of Bowie (Texas) abruptly closed Feb. 4. Hospital officials said the facility was shut down to enable them to restructure the business. Hospital leaders voluntarily surrendered the license for Central Hospital of Bowie. 

Washington
18. Yakima, Wash.-based Astria Regional Medical Center filed for Chapter 11 bankruptcy in May 2019 and closed in January. When the hospital closed, 463 employees lost their jobs. 

West Virginia
19. Williamson (W.Va.) Hospital filed for Chapter 11 bankruptcy in October 2019 and was operating on thin margins for months before shutting down on April 21. The 76-bed hospital said a drop in patient volume due to the COVID-19 pandemic forced it to close. CEO Gene Preston said the decline in patient volume was "too sudden and severe" for the hospital to sustain operations. 

20. Irvine, Calif.-based Alecto Healthcare Services closed Fairmont (W.Va.) Regional Medical Center on March 19. Alecto announced plans in February to close the 207-bed hospital, citing financial challenges. "Our plans to reorganize some administrative functions and develop other revenue sources were insufficient to stop the financial losses at FRMC," Fairmont Regional CEO Bob Adcock said. "Our efforts to find a buyer or new source of financing were unsuccessful." 

21. Bluefield (W.Va.) Regional Medical Center closed July 30. Officials said the decision to shut down the hospital was based on several factors, including declining patient volume and reimbursement rates and significant financial damage tied to the COVID-19 pandemic. 

More articles on healthcare finance:
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15 hospitals laying off workers

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