Quorum cited financial troubles as the reason for the closure. The company said declining revenues, increasing provider compensation and a competitive market caused Affinity Medical Center to record financial losses for the last six years.
Quorum decided to shut down the hospital after trying to secure a new owner for the facility without success, according to a Securities and Exchange Commission filing.
An Ohio Worker Adjustment and Retraining Notification Act notice dated Jan. 5 indicated 692 of the hospital’s employees would be laid off by March 7. The closure will also result in 116 workers at Massillon-based Doctor’s Hospital Physician Services, which provides services at Affinity Medical Center, to lose their jobs, according to a separate WARN notice.
Quorum, the 31-hospital spinoff of Franklin, Tenn.-based Community Health Systems, ended the third quarter of 2017 with a net loss of $29.2 million on revenues of $499.3 million. That’s compared to the same period of 2016, when the company posted a net loss of $7 million on revenues of $543.9 million.
More articles on healthcare finance:
Hospitals face $1.6B in Medicare payment cuts after judge dismisses lawsuit: 6 things to know
Hospital CFOs: 3 things demanding your attention in 2018
Colorado hospitals now required to post prices: 3 things to know
Editor’s Note: This article was updated Jan. 8 to include information from the Ohio Worker Adjustment and Retraining Notification Act notice.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
