The Huntsville Memorial Hospital Board of Directors has decided to close the Madisonville emergency department, which happened on Monday, April 9.
HMH officials stress that the clinic will remain open.
The directors, by way of a press release, state they would like to emphasize that there are no plans to close the hospital, that the closure is merely a realignment of the business strategy.
“We look forward to continuing to serve you at our Madisonville Clinic,” the release states.
According to the release, a recent increase in hospital consolidation activity across the country highlighted the need to minimize cost structure supporting a hospital’s revenue stream.
Hospitals are consolidating in order to achieve these economies of scale as a way to compensate for continual downward pressure on their reimbursement rates, the release states.
More focus on internal efficiency and productivity and core business revenue streams are essential to counterbalance falling marginal revenue due to these cuts from government and third-party payors.
The Huntsville Memorial Hospital board recognized the challenges, and see the closure as its responsibility to take appropriate actions based on internal assessments, as well as keeping in touch with national trends.
The HMH Board believes that this decision is key to being able to focus more energy on HMH’s core business plan at this time.