CHI Health St. Francis will close its skilled nursing facility March 10, a spokesperson for the Grand Island, Neb.-based hospital confirmed to Becker’s Jan. 14.
“This decision reflects broader changes in how skilled nursing care is delivered and the increasing shift away from hospital-based skilled nursing services across the country. Our priority is supporting our patients, families and staff through a thoughtful and well-planned transition,” Steve Schieber, president of CHI Health St. Francis, said in a statement.
The facility, located about half a mile from the main St. Francis campus, provides 24/7 nursing care, medical appointment transportation and specialized rehabilitative services. Its care team includes physicians, rehabilitation nurses, social workers and occupational therapists, according to the hospital’s website.
It’s unclear how many staff members may be affected by the closure. The hospital is part of Omaha, Neb.-based CHI Health, which operates a network of hospitals and outpatient locations throughout the Midwest and is part of Chicago-based CommonSpirit Health.
The move aligns with a broader trend of hospitals scaling back or closing skilled nursing operations due to persistent financial challenges, staffing shortages and reimbursement changes. Many systems are shifting away from directly operating skilled nursing units, instead relying on partnerships with freestanding facilities or expanding home health services, according to industry leaders.
“Skilled nursing has steadily moved out of hospital-based units and into freestanding facilities, home health and other community settings, driven by payment reforms, workforce pressures and patient preference for lower-intensity, lower-cost sites of care,” Willa Prescott, vice president of communications at the Nebraska Hospital Association, told Nebraska Public Media.
A study published Jan. 12 in JAMA Internal Medicinefound U.S. skilled nursing facility operating capacity declined 5% from 2019 to 2024, likely due to staffing shortages. Rural areas saw the largest capacity declines, contributing to longer hospital stays and greater travel distances for discharged patients.
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