Financial challenges have forced Community Memorial Hospital to cut several services, with CEO Roy Davis giving the hospital a "50-50" chance of surviving, CBS affiliate WANE reported Dec. 6.
For example, in September 2022, the Hicksville, Ohio-based hospital closed its obstetrics department and ended labor and delivery services after "years of declining births and the struggle to recruit staff," according to Mr. Davis, who took over as CEO in October 2021.
"It's just harder and harder," Mr. Davis told WANE. "Population has shrunk here, insurance companies are not paying correctly, especially the government ones — Medicare and Medicaid. They're underpaying severely on claims."
Past issues, including a debt remodeling project in 2003 and a substantial penalty from a commercial lab fraud case with the hospital's former administration, have left Community Memorial with around $15 million in debt, according to the report.
The hospital has also scaled back inpatient care because it averages only three inpatients a day and has worked with state officials and vendors to try to alleviate some of its financial pressures.
Community Memorial is not planning to fire or lay off any employees, but positions will not be able to be replaced if employees leave due to financial constraints, according to the report.
"I'm from a town where the hospital closed, and I saw what that did," Mr. Davis told WANE. "If this hospital closes in this town, that's $30 million in income leaving."
Becker's has reached out to the hospital for comment and will update this story as more information becomes available.