Hartselle Medical Center will close its doors on Jan. 31, according to the owners of hospital, Capella Healthcare of Franklin, Tenn.

Citing ongoing financial struggles, Mark Medley, president of the hospital division of Capella Healthcare, said the company had to make the tough decision to close the hospital.

“Despite the excellent care and outstanding customer service delivered by our employees and physicians – and having invested significantly in technology, physician recruitment and service line development over the past five years – Hartselle Medical Center has struggled for several years, and it has now reached a critical state,” Medley said Monday.

Hartselle Mayor Dwight Tankersley said this loss is devastating for the community.

“It’s a sad day in Hartselle,” Tankersley said. “My mother worked there… I was born there. This hospital has been an important part of the community for so many years. It’s one of our largest employers. This will hurt our city.”

Hartselle Medical Center employs 136 people. Medley said they will work with the employees to help them find other jobs.

He said the company will bring in counselors to help employees revise their résumés and other services to help their employees land jobs. They will be conducting job fairs with representatives from other hospitals.

“This decision has nothing to do with the phenomenal work of HMC’s dedicated and talented employees and physicians, who have served patients extraordinarily well for many years,” Medley said. “These are dynamics out of their control and ours. And, it is our number one priority at this time to assist each and every one of Hartselle’s employees to find a new position as quickly as possible.”

Tankersley added that the closing will affect the city from a tax revenue perspective.

“They have been a significant source of tax revenue for our community,” Tankersley said. “It definitely have big impact on our city’s budget.”

Hartselle Medical Center averaged a daily census of 10 percent of its 150 beds. The hospital had less than eight medical-surgical patients and 13-15 psychiatric patients per day.

Medley attributed to the large number of patients leaving the community to use hospitals in Decatur, Huntsville and Cullman.

He also said that a recent study concluded that Morgan County had 300 more hospital beds than were needed.

Medley said hospitals in Morgan County – along with other rural hospitals in Alabama – are paid the lowest in the nation to treat Medicare patients. Payment from commercial insurance providers is also the lowest in the nation.

“This was an extremely tough decision that came after exploring a number of options for the future of the hospital,” added Medley. “But the extreme challenges of healthcare reform, a weak economy and the toughest reimbursement climate in the nation here in Alabama have become insurmountable dynamics.”

Hartselle Medical Center is just one of many community hospitals everywhere and especially in Alabama that are struggling. According to the latest available data by the American Hospital Association, one in three of the nation’s hospitals are losing money. In a recent Alabama Hospital Association survey, nearly half of hospital CEOs said that their hospital was operating at a loss.

Before reaching this decision, Medley said Capella tried a number of things to preserve the hospital, including sharing certain services and combining administration with Parkway Medical Center, as well as exploring partnership opportunities with a number of other health systems and providers.

In December, however, Parkway Medical Center was sold to Huntsville Hospital, but no announcement was given by Capella what would happen to HMC.

“We have tried to market Hartselle Medical Center to other buyers, but there has been no interest in anyone wanting to keep it open,” Medley said. “We’re still hopeful that we could sell the hospital to another company, a local investor or group of investors to keep it open.”

Hartselle Medical Center will remain open and provide services through Jan. 31. After that time, patients have a number of other options for hospital care in the region – including Decatur General Hospital (11 miles away), Parkway Medical Center (12 miles away), Cullman Regional Medical Center (20 miles away) and Huntsville Hospital (30 miles away).

For patients who have questions about existing appointments with HMC, please consult your doctor or call the hospital’s main line: 256-751-3000.