Over the last 10 days, one acute-care hospital in Alabama suspended operations indefinitely, with another physician-owned hospital in California following suit.
1. Thomasville (Ala.) Regional Medical Center, a 29-bed acute care facility, suspended operations indefinitely amid staffing shortages and financial headwinds. Thomasville Regional has faced significant financial difficulties since opening four years ago, and in April was listed on a foreclosure filing for almost $40 million owed on the property.
Community officials were notified that the hospital was short on cash and staff were not paid on time last week, according to Thomasville Mayor Sheldon Allison Day. A potential $20 million loan to stabilize the hospital remains up in the air and certain stakeholders are interested in purchasing the hospital. Community stakeholders will meet Sept. 23 to discuss the hospital's future.
2. Stanislaus Surgical Hospital, a physician-owned facility in Modesto, Calif., suspended operations indefinitely, effective Sept. 14, and laid off all 160 employees.
The decision comes after CMS terminated the 23-bed hospital's provider agreement for noncompliance with various conditions of participation within the agency's Medicare and Medi-Cal programs. CMS said SSH failed to meet its requirements under three categories: basis and scope, pharmaceutical services, and infection prevention and control and antibiotic stewardship.
SSH leaders disagree with CMS and are weighing options for long-term direction, including a potential appeal, a spokesperson for the hospital told Becker's.