Crittenden Regional Hospital To Close Permanently On September 7

The board of trustees of the Crittenden Regional Hospital (CRH) in West Memphis said it planned to close its doors on Sept. 7 after “exploring all possible options with legal and financial advisors.”

A lengthy statement on the Crittenden County hospital’s web site said the decision was “difficult,” but the facility could no longer keep up with the changes occurring in the health care industry.

The hospital will stop admitting patients effective August 25, 2014, and close the hospital permanently on September 7. The exact number of displaced workers and indirect jobs affected was not shared.

“Change is occurring at every hospital in the nation, and nowhere is it having a greater impact than on rural hospitals such as CRH. Long before recent health reform measures, the decline was already growing,” the statement said.

The board cited larger economic struggles, declines in patient volume, and lower reimbursements as significant financial pressures on the facility. It also said that despite being licensed for 140 beds, its occupancy rate was around 45%, one of the lowest in the Mid-South.

“The hospital’s financial struggles were further compounded by a significant number of physician departures and two recent fires, the most significant of which shut down the facility for more than six weeks,” hospital leaders said in the statement. “Even the expansion of Medicaid in Arkansas and impressive enrollment rates in the Private Option by citizens in the service area were not enough to overcome these issues.”

Crittenden Regional said its board had been seeking potential solutions for the last five years, including partnerships and buyouts as well as securing new capital.

“We are deeply saddened to have to make this decision after all the attempts that have been made to preserve the hospital for our community,” said Gene Cashman, CEO of CRH. “With counsel from national healthcare consulting firms and the passage of a county-wide sales tax, we had identified a long-term strategic plan that had set our organization on a path to improvement. This summer’s fire, and the subsequent shutdown, derailed that plan’s success.”

In June, residents of Crittenden County approved a one-percent local sales tax increase to address the hospital’s debt. With the announced closure, the collection of the tax will not begin as scheduled.

“The sales tax campaign was a tremendous testament to the community’s support for Crittenden Regional and we are thankful for that,” says board chairman David Rains. “Unfortunately, the fire decimated our cash position. We are not able to finance our operations until December when the tax revenues would have been received.”