Shands Lake Shore Regional Medical Center in Lake City, Fla, is ending all services at the hospital and its physician clinics Aug. 31.
The hospital, owned by the Lake Shore Hospital Authority, announced in July that it was closing. The hospital had to borrow money to maintain operations, and declining patient volume and financial challenges have resulted in losses that are unsustainable, the hospital said.
The announcement came after Franklin, Tenn.-based Community Health Systems, which operates the hospital, entered into a settlement and termination agreement with the Lake Shore Hospital Authority for the planned closure of Shands Lake Shore on June 30, according to a filing with the Securities and Exchange Commision. After Shands Lake Shore closes, CHS will operate 12 hospitals in Florida.
The hospital is also terminating its Medicare contract Aug. 31, according to a notice published by CMS. Though the hospital's Medicare contract will end Aug. 31, it can still receive payments until the end of September for patients admitted before the termination date, according to the CMS notice.
In the closure announcement, Shands Lake Shore interim CEO Jack Montois thanked employees for their service.
"Every employee, member of the medical staff, member of the board of trustees and volunteer is valued for their important part in caring for patients and serving the community," he said. "Their compassionate professionalism is appreciated, and I extend a sincere thank you to them for their years of service."