MercyOne has announced another downsizing, saying it plans to close its South Des Moines Family Medicine and Urgent Care office.
It cited staffing shortages and government reimbursements that do not cover the full cost of care as reasons for shutting down the facility at 6601 SW 9th St. It will be closing June 26.
“These pressures are combined with recent and expected government funding and policy changes across Medicaid and Medicare, reducing reimbursement to hospital systems,” MercyOne said in a news release. “It is not possible to absorb these impacts without making thoughtful, forward-looking adjustments to remain sustainable.”
The release said MercyOne would not be making any further comment regarding the closing.
“Our patients remain the top priority, and we’ll work to provide a seamless transition as we navigate this process,” Katie Fredericks, director of operations for the MercyOne Medical Group, said in the release.
It also noted that health care providers and others who work at the facility are being offered positions at another MercyOne location in the Des Moines area, and their patients will be notified where they are relocating.
Where else can patients go?
For patients needing urgent care, other local MercyOne options include:
MercyOne isn’t the only local health care provider making cuts
MercyOne announced at the end of January that it was cutting 67 jobs from its revenue cycle department, which manages all financial aspects from patient registration to final payment. It has previously announced the closing of its clinic in Ottumwa displacing 40 workers.
West Des Moines-based UnityPoint Health also is making cuts, announcing in early April that it will eliminate 207 information technology jobs in July, including 189 at 11 locations in Iowa. The functions are being outsourced to another company in a cost-savings move.
At the time of the announcement, UnityPoint said it was facing financial pressure driven by rising labor costs, supply and drug costs, reductions in reimbursement and increased demand for complex care.
Chris Mitchell, president and CEO of the Iowa Hospital Association, said the health care industry throughout the nation is experiencing financial pain.
“Ongoing workforce shortages mean there simply aren’t enough nurses, physicians and staff to safely meet patient needs — especially in rural and underserved communities. At the same time, inflation has driven up the cost of everything hospitals rely on, from supplies to utilities, while reimbursement from public and private payers has not kept pace with the actual cost of care,” Mitchell said in an email.
“When expenses keep rising and revenues don’t, year after year, the math stops working,” he said. “Hospital closures aren’t just financial decisions — they mean communities losing access to essential care close to home. Addressing this challenge will require coordinated action to strengthen the healthcare workforce and modernize payment systems so hospitals can continue to serve as a trusted, reliable cornerstone of their communities.”
Kevin Baskins covers jobs and the economy for the Des Moines Register. Reach him at kbaskins@registermedia.com.
This article originally appeared on Des Moines Register: MercyOne closing in south Des Moines. What’s driving health care cuts?
Reporting by Kevin Baskins, Des Moines Register / Des Moines Register
USA TODAY Network via Reuters Connect
