MercyOne has announced plans to close its South Des Moines (Iowa) Family Medicine and Urgent Care office on June 26, citing staffing shortages and government reimbursement rates that do not cover the full cost of care, according to an April 28 statement on the hospital’s website.
The closure is the latest in a series of cutbacks for the health system, which announced 67 job cuts from its revenue cycle department in January and previously closed its Ottumwa, Iowa, clinic.
MercyOne said recent and expected changes to Medicaid and Medicare funding contributed to the decision. Staff at the facility are being offered positions at other MercyOne locations in the Des Moines area.
The closures come amid broader financial strain across Iowa’s healthcare sector. West Des Moines, Iowa-based UnityPoint Health announced in early April it would eliminate 207 IT jobs, citing rising labor and supply costs alongside reimbursement reductions.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.