Marshall, Mo.-based Fitzgibbon Hospital plans to close two primary care clinics, an inpatient behavioral health unit and Fitzgibbon Home Health and Hospice services, effective Dec. 31, in an effort to save more than $2 million annually.
The cost-cutting measures, which were approved by Fitzgibbon’s board of trustees in collaboration with management, come at a time of “unprecedented economic headwinds” for Missouri rural hospitals, according to a Dec. 1 news release.
“Fitzgibbon is not unlike many other rural hospitals in Missouri in that the cost of providing care is not covered by the reimbursements we receive,” Angy Littrell, president and CEO of Fitzgibbon, said in the release. “We’ve been operating at significant losses since the COVID shutdown, due to inflation, increased staffing costs and reimbursements from governmental payers that fall short. These cost-reduction measures are absolutely necessary to meet the obligations of our fiduciary lenders and bondholders, and to ensure continued operations at the hospital.”
The service cuts and clinic closures include Brunswick, Mo.-based Grand River Medical Clinic, Fayette, Mo.-based Fitzgibbon Family Health, the hospital’s 10-bed inpatient behavioral health unit, Fitzgibbon Home Health and Hospice in Marshall, and pain clinic services provided by Wally Ralston, DNP, which will have an option for 90-day care continuation.
The service cuts will affect around 30 employees, the release said.
“These are not easy decisions, but it is our goal to make Fitzgibbon financially stable to be able to provide essential healthcare services to our community in the times ahead,” Bud Summers, Fitzgibbon’s chairman of the board of trustees, said in the release.
“These cost reductions will allow us to continue to provide reduced inpatient services, treatments in our community cancer center, diagnostic procedures such as MRI and other high-tech radiology and colon cancer screenings, as well as orthopedics, therapy and primary care, which all are so vital to our community. We don’t want to lose access to our core services, so that’s our aim,” Mr. Summers added.
