Hicksville, Ohio-based Community Memorial Hospital permanently closed its doors Aug. 31 after temporarily shutting down in May due to financial challenges, Bill Cherry, former CEO of Community Memorial Hospital, confirmed with Becker's.
"The decision to close Community Memorial Hospital follows thorough efforts to find a viable path to continue operations," Mr. Cherry said in a Sept. 4 statement shared with Becker's. "Unfortunately, despite all our efforts made, CMH has not been able to identify a sustainable solution. We understand the profound impact this closure will have on the community and we extend our deepest gratitude to the residents of Northwest Ohio and Northeast Indiana for their unwavering support and trust over the years."
Financial challenges at the hospital stemmed from a fraudulent laboratory agreement that the hospital entered in 2016, which ordered the hospital to pay $25 million back to insurance companies, a spokesperson for the hospital shared with Becker's.
The bad agreement, coupled with issues related to a new electronic health system in 2021 and changes to the Ohio Medicaid payment system in February 2023, left the hospital with financial challenges and liabilities.
In January, Community Memorial's hospital's then-CEO Roy Davis shared that the hospital needed $5 million to return to normal. Mr. Davis had previously given the hospital a "50-50" chance of survival last December.
The hospital also had its Chapter 9 bankruptcy application rejected in late May following the temporary suspension of services.
Operations will continue for physicians providing services in the hospital's medical office building, the hospital spokesperson said.
Becker's has reached out to Mr. Davis and will update this story should more information becomes available.
Editor's note: This story has been updated as of Sept. 4 at 12:40 p.m. CT.