10 hospitals have closed this year — here's why

From cash flow and staffing challenges to dwindling patient volumes, many factors lead hospitals to shut down. 

Here are the factors that led 10 hospitals to close this year: 

  • Franklin, Tenn.-based Community Health Systems closed ShorePoint Health Venice (Fla.), a 312-bed hospital, in September. Officials cited several reasons for the closure, including a decline in inpatient volume and rising expenses. The decision comes after the opening of Sarasota Memorial Hospital-Venice in November, according to the Herald-Tribune.
  • Blessing Health System closed its hospital in Keokuk, Iowa, Sept. 30. Quincy, Ill.-based Blessing Health said the decision to close the hospital was driven by several factors, including financial challenges and low demand for inpatient care. "The hospital has been in a financial crisis for 10 years," the health system said in a news release. 

  • Santa Cruz Valley Regional Medical Center in Green Valley, Ariz., closed June 30. The hospital's CEO said the decision was made after the hospital was unable to secure emergency department staffing for the Fourth of July weekend. The closure of Santa Cruz Valley Regional Hospital left the area with one hospital, 18-bed Northwest Medical Center in Sahuarita, which opened in 2020.

  • Marietta, Ga.-based Wellstar Health System closed Atlanta Medical Center South in May. The system converted the facility into a 24-hour outpatient site. Low patient volume for emergency services at Atlanta Medical Center South was one reason given for the change.

  • Galesburg (Ill.) Cottage Hospital closed Jan. 8 and its workers were told via email that their employment was terminated. Galesburg Cottage Hospital's owner attributed the decision to abruptly close the facility to CMS' decision to terminate the facility's Medicare contract. In April, Peoria, Ill.-based OSF HealthCare acquired the real estate, medical equipment and other assets of Galesburg Cottage Hospital for $4 million.

  • West Reading, Pa.-based Tower Health closed Brandywine Hospital in Coatesville, Pa., on Jan. 31. Brandywine Hospital was the second hospital Tower Health closed. The system shut down Jennersville Hospital in West Grove, Pa., in December 2021. The decision to close both facilities came after Tower Health terminated a deal with Canyon Atlantic Partners, a turnaround firm based in Austin, Texas. Under that deal, Canyon Atlantic was set to assume ownership and operation of both hospitals Jan. 1, but the deal fell apart in December.

  • In late March, Audrain Community Hospital in Mexico, Mo., and Callaway Community Hospital in Fulton, Mo., shut down. Kansas City, Mo.-based Noble Health, the hospitals' owner, initially attributed the closures to a technology issue and the need to restructure operations to become financially viable. Citing lawsuits, documents from CMS and interviews with employees, Kaiser Health News reported in June that the hospitals stopped paying their bills and care quality diminished after Noble Health took them over. Workers at both hospitals were fired after a Texas-based company took over the facilities from Noble Health.

  • Cleveland (Texas) Emergency Hospital shut down in April. All of its services were consolidated to Texas Emergency Hospital in Cleveland. Both hospitals are part of Emergency Hospitals Systems. Emergency Hospitals Systems' CEO Michael Adkins said ending services at Cleveland Emergency Hospital was a strategic move that would allow the system to provide better healthcare to the community.

  • In late May, Patients' Hospital of Redding (Calif.) closed after 30 years. The hospital's owner said there wasn't enough inpatient volume to keep the facility open. 

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars