Keene, N.H.-based Cheshire Medical Center will close its Farnum Inpatient Rehabilitation Unit by Oct. 30, citing low utilization and unsustainable costs.
The unit has stopped accepting new referrals and admissions, and current patients will complete their treatment there, CEO and President Joseph Perras, MD, said in a statement shared with Becker’s. The 20-bed unit has an average daily census of five to six patients, according to Dartmouth Health.
Twelve positions were eliminated. Of the unit’s 39 employees, 34 were reassigned to similar positions at Cheshire, while five were laid off. An additional seven leadership and administrative positions at Cheshire were eliminated Sept. 22.
“Over the last six months, we have been sharply focused on a financial turnaround strategy to help us overcome substantial losses and work our way back to a breakeven operating margin,” Dr. Perras said. He cited expenses tied to contracted labor and temporary providers, the loss of eligibility for the 340B drug discount program and a government-dominated payer mix.
Outpatient rehabilitation services at Cheshire will continue, and the hospital said it has been in contact with other area hospitals that provide inpatient rehabilitation.
Cheshire reported a nearly $3 million operating loss in the fiscal year that ended June 30, down from about $8 million the previous year, the Keene Sentinel reported Sept. 25, citing financial disclosures.
The move follows Lebanon, N.H.-based Dartmouth Health’s Sept. 15 announcement that it laid off 124 employees and eliminated 303 open positions. Dr. Perras said Cheshire’s financial performance improvement work is aligned with the system’s Acceleration to Transformation Office.
Cheshire Medical Center is a member of Dartmouth Health, which operates nine hospitals and more than 24 clinics across New Hampshire and Vermont.
