Moulton, Ala.-based Lawrence Medical Center, an affiliate of Huntsville Hospital Health System, permanently closed its emergency department at 7 p.m. on May 23 as part of a strategic shift to become an outpatient-only facility.
The move comes ahead of a planned 40-year lease agreement under which Huntsville Hospital Health System will assume full operational and financial responsibility for Lawrence Medical Center. While the organizations have maintained a long-standing affiliation, they have operated financially independently until now.
“This is the best path forward to ensure that the people of Lawrence County continue to have availability of healthcare in our community,” Gary Terry, chair of the hospital’s board, said in a news release. “Over 99% of our encounters each year are outpatient services such as primary care, imaging, lab testing, urgent care and physical therapy. Having less than 1% of our total volume as inpatient care has placed the hospital in a situation that is not sustainable.”
Lawrence Medical Center, a 98-bed facility, saw more than 60,000 outpatient and clinic visits in 2024. However, the inpatient census has averaged fewer than five patients per day, and inpatient services ended earlier this year, according to hospital leadership. Mr. Terry noted that maintaining licensure as an acute care hospital requires substantial resources to operate and upgrade an aging facility that sees minimal inpatient utilization.
Under the lease agreement, Huntsville Hospital Health System will adopt a model it has successfully implemented in other Alabama counties, including Colbert, Jackson, Morgan, Limestone and Marshall. This approach retains local community involvement while shifting financial accountability and operational control to the larger health system. As part of the transition, local tax revenue currently used to support hospital operations will be redirected to a building fund for new outpatient facilities.
“We are committing to help the Lawrence County Health Care Authority in finding a workable path,” Jeff Samz, president and CEO of the health system, said. “The crisis in rural healthcare in Alabama is a well-known fact. There is no easy solution. I applaud the LMC Board for making a hard decision. Building new outpatient facilities means many more Lawrence County residents will benefit from this tax support than happens today.”
A recent facility assessment determined that the current hospital building is beyond reasonable repair and prohibitively expensive to bring up to code. Once new outpatient facilities are completed, the existing hospital will be vacated. The health system said it will work with local leadership to determine the best long-term use for the property.
As part of the agreement, Huntsville Hospital Health System has committed that 100% of local support will be reinvested into Lawrence County’s healthcare operations, and any excess margins generated from services provided in the county will be fully reinvested into local facilities.
Lawrence Medical Center employees “in good standing” who are affected by the emergency services closure will be offered opportunities within the Huntsville Hospital Health System, according to the news release.
