Shrinking reimbursement forces Michigan hospital to close home health unit, CEO says

Sturgis (Mich.) Hospital will close its home health service Dec. 31, according to the Sturgis Journal.

The looming closure comes after the hospital closed its urgent care center in May, and its wound clinic and pain management center in December 2017.

"We continue to close non-profitable departments and are having to look at every facet of our operation for savings to help weather this decrease in activity and decreasing payments," Sturgis Hospital President and CEO Rob LaBarge told the Sturgis Journal.

The hospital said that during the past 18 months, Medicare, Medicaid and commercial insurance payments have shrunk as operational costs mount. The hospital has also experienced volume declines as changes in technology, medical practice and insurance benefits take place, according to the report. Sturgis Hospital is actively seeking a partner to strengthen the hospital's finances.

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