8 hospital closures in 2023 

Declining patient volumes and financial challenges are two major factors driving hospital closures this year. 

Here are eight hospitals that have closed or announced plans to close so far in 2023:

  1. Vancouver, Wash.-based PeaceHealth is taking initial steps to close its Eugene (Ore.) University District hospital as the system shifts operations to its RiverBend campus. PeaceHealth described the Eugene location as "underutilized." 
  2. South City Hospital, a 178-bed facility in St. Louis, plans to close because of financial challenges. The 154-year-old hospital has been under receivership for the past few months. It began winding down the facility Aug. 4.
  3. Martin General Hospital, a 49-bed facility in Williamston, N.C., suspended operations Aug. 3 and plans to file for bankruptcy. The hospital, which lost $13 million in 2022, cited financial challenges related to declining population and utilization trends as reasons for the decision.
  4. Grand Rapids, Mich.-based Corewell Health will close its Lakeview, Mich.-based Spectrum Health Kelsey Hospital in October after a steady decline in admissions. In June, Corewell opened a $12 million care center a few minutes away from Spectrum Health Kelsey. 
  5. Eastern Niagara Hospital in Lockport, N.Y., closed June 17 after years of financial turbulence. In November 2019, the hospital filed for Chapter 11 bankruptcy protection and signed a management agreement with Buffalo, N.Y.-based Catholic Health. The system had been planning to close Eastern Niagara Hospital once its replacement hospital opens. 
  6. McLaren St. Luke's in Maumee, Ohio, closed May 8 and ceased all outpatient services. Cincinnati-based Mercy Health is acquiring the hospital campus, which includes 12 buildings, from Grand Blanc, Mich.-based McLaren Health Care. Mercy is working with WellCare Physicians Group practices through the transition to maintain the continuity of patient care. 
  7. San Antonio-based Texas Vista Medical Center, part of Dallas-based Steward Health Care, closed May 1. The 325-bed hospital provided healthcare to predominantly lower income residents in San Antonio and South Texas for almost 40 years and had been struggling financially. The closure resulted in 827 layoffs. 
  8. St. Margaret's Health-Peru (Ill.) closed Jan. 28 after the system's CEO and chair of the board detailed plans to temporarily shutter the hospital and reopen it once a rural emergency hospital designation is finalized. However, the hospital will need to reopen before it can qualify for the designation.

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