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St. Mark's Medical Center in La Grange laying off 64 employees, cutting some major services

The center will only offer 24/7 emergency medical services, patient observation and select outpatient services.

LA GRANGE, Texas — The primary medical center in La Grange is cutting a number of services in an effort to keep the facility open. The center is also laying off dozens of employees. 

St. Mark's Medical Center said it is pursing the new federal designation of "Rural Emergency Hospital" (REH) as a "path to keep the facility open and serve the community's healthcare needs with modified services." 

According to a press release from St. Mark's, REH designations are for financially struggling rural hospitals and the REH model is designed to maintain access to critical and emergency outpatient services in communities that may not be able to financially sustain or support a community hospital.

"There was a lot of federal help, state help, private donations coming in, people doing anything they could to keep the hospitals open," said Craig Moreau, the emergency management coordinator for the town of Fayetteville, Texas.

To qualify for the REH designation, a medical center cannot offer inpatient services. However, 24/7 emergency services must be maintained and select outpatient services are also eligible.

As of Feb. 18, St. Mark's now only offers 24/7 emergency medical services, patient observation and select outpatient services. The following services have been discontinued:

  • Inpatient services

  • Surgical services

  • Swing bed (post-acute skilled rehab care)

  • Orthopedic clinic

  • Ambulatory care

  • Speech therapy

Patients scheduled for upcoming elective services that require inpatient or surgical care should consult with their physician for options, according to the St. Mark's release.

"They're not going to have very many or any inpatient people that, if you come to the E.R. and you need some long-term care, you're going to have to be shipped out," Moreau said.

St. Mark's will continue to offer the following services:

  • 24/7 emergency services

  • Observation

  • Laboratory

  • Imaging and X-Ray

  • Mammography

  • Nuclear medicine

  • Pharmacy

  • Physical and occupational therapy

  • Respiratory therapy

  • Cardiac rehabilitation

  • Cardiovascular imaging center

  • Wound care

  • Sleep study

Dudley Piland, chair of the St. Mark's board, said the center has struggled to make ends meet for the decade he has served on the board. Among the financial struggles has been repaying the $13 million mortgage debt.

"The new REH designation is the first significant change to federal hospital designations in over 25 years and shows that our government recognizes the unique challenges that rural hospitals face. Without this new federal program, St. Mark's would be forced to close the doors in the first quarter of 2023, an outcome that no one wanted for the staff, their families or our community," Piland said. "St. Mark's is a blessing to have in our region, and we are committed to finding a way to keep it open in some capacity."

According to a recent WARN report published by the Texas Workforce Commission, St. Mark's is laying off 64 employees.

"When you find yourself needing services and you're a long way from care, obviously outcomes are worse. The second thing that we don't talk about enough is just the importance of a rural hospital to local economic development. It's generally 170 good jobs, with family-oriented staff that go to the local school district and shop at the local grocery store and bank," said John Henderson, president and CEO of the Texas Organization of Rural and Community Hospitals (TORCH).

"Sixty-four families that have lost one or their only breadwinners is a big deal for a community like ours," Moreau said.

Both said hospitals like St. Mark's are doing their best to hold on.

"They are short-staffed. They've run out of some of the funding. It's just a huge impact for everyone," Moreau said.

"We tell people that our hospitals limped into the pandemic. They've survived, thankfully, but they're going to limp out of the pandemic," Henderson said.

To learn more about the changes to the medical center's services, read St. Mark's full press release.

St. Mark's financial struggles are not unique. A report from KaufmanHall shows one in 10 Texas hospitals are at risk of closure, and those in rural communities have a much larger threat. See KVUE's recent report digging into the struggles rural hospitals are facing.

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