Two more hospitals, both in California, are shutting down their home health business lines. In Arcata, the Mad River Community Hospital Board accepted management’s proposal to shut down its home health agency. “Rural hospitals throughout California are financially struggling in the aftermath of the pandemic, and Mad River is no different,” Mad River CEO Doug Shaw says in a release. “Costs are at an all-time high, while patient volumes have yet to return to pre-pandemic levels and reimbursement rates have failed to keep up with inflation over the last 10 years.”
Shaw cited Hazel Hawkins Memorial Hospital’s closure of its San Benito Home Health Agency in Hollister last month as another example of a Californian rural hospital suspending its HHA (see details of that closure in HHHW by AAPC, Vol. XXXII, No. 4). In Oroville, Golden Valley Home Health is being shuttered by its parent, Oroville Hospital, reports the Enterprise- Record newspaper. In contrast to Mad River, the hospital made no public announcement about the shutdown and employees weren’t sure whether they were being transferred or laid off, according to the newspaper. Employees reportedly were told the unit was being suspended because it was not profitable. Golden Valley served some areas not covered by any other HHAs, employees told the Enterprise-Record.