3 major care providers facing closure

Continued financial challenges have led to closure discussions at three major care providers in the last week.

Hospital Sister Health System shared closure plans Jan. 22 for two of its hospitals, Sacred Heart Hospital in Eau Claire and St. Joseph's Hospital in Chippewa Falls, due to take effect "around the end of the first quarter of 2024."

HSHS also plans to close all the Western Wisconsin locations and health centers it operates in partnership with Green Bay, Wis.-based multispecialty group Prevea Health. Most of the health centers are expected to close by April 21, but the Prevea residency clinics will close by June 30.

Financial stress related to inflation, workforce constraints, the pandemic, local market challenges and other industry wide trends was cited by HSHS as reason for the closures.

The State of New York has plans to reduce or close the University Hospital at Downstate in Brooklyn due to factors that include an operating deficit of around $100 million, a deteriorating hospital building and low patient volumes. 

SUNY Downstate, part of SUNY Downstate Health Sciences University, is the only public academic medical center in New York City.

A transformation plan development for SUNY has been directed by New York Gov. Kathy Hochul in hopes of avoiding a closure and securing its future. The plan involves transferring Downstate inpatient care to other Brooklyn hospitals and could also include some workforce reductions. 

Nampa, Idaho-based Saltzer Health, a physician group part of Salt Lake City-based Intermountain Health, plans to shut down or sell by March 29 due to financial and economic challenges.

Saltzer has 450 employees and 11 locations that would be affected should the group be forced to close or sell.

Saltzer was acquired by Intermountain in October 2020 and remains "optimistic" that a sale of the physician group can be achieved. The group plans to work with patients and caregivers to ensure a smooth care transition and will contact patients about their options moving forward. 

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