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Hospital Service Closures Underscore Financial Strains on Rural Care

5/2/2026, 8:38:56 AM

Baptist Health Fort Smith Obstetrics Unit Shuts Down

Baptist Health Fort Smith announced termination of obstetric services at its Zenith Hospital, citing unsustainability after deliveries fell from about 92 to 20 per month. Mercy Fort Smith recorded 3,006 births in 2025. Around 40 labor-and-delivery nurses, including 26-year veteran Loralee Hamman, are leaving. Hamman called the final shift “a rough day, a sad day” and the closure “the end of an era, the closing of a door.” She plans to continue delivering babies at Mercy Fort Smith.

Chadron Hospital Dialysis Unit Ceases Operations

Chadron Hospital in Nebraska closed its outpatient dialysis unit at the end of March 2026. The unit served 17 patients, including Mark Pieper, who said, “I guess I’ll just bloat up and die in a month.” CEO Jon Reiners reported a $1 million annual loss due to insufficient Medicare reimbursement. A year-long search for a private operator failed as all declined. Nebraska’s Rural Health Transformation Program will provide $219 million, but only <=15 percent can fund patient care. Patients now travel up to nine hours weekly; Jim Wright said, “It’s a case that if you don’t, we die.” Linda Simonson, whose husband Alan relied on the unit, called the situation “just unreal.”

Data & Statistics

Deliveries at Baptist Health fell from 92 to 20 per month; Mercy Fort Smith had 3,006 births in 2025. Chadron’s dialysis unit served 17 patients and lost $1 million annually. Nebraska’s rural health program provides $219 million, but <=15 percent can fund direct patient care, leaving patients with up to nine-hour weekly travel.

Why It Matters

The closures reduce local access to obstetric and renal care, increase travel burdens, and may widen health disparities in underserved areas. Patients face longer commutes and higher costs; displaced nurses must find new jobs.

Criticism & Opposition

Hospital administrators cite financial unsustainability, while nurses and patients argue the services are essential and criticize the lack of local alternatives. State funding does not address the identified cost gap.

Verbatim Quotes

  • “It’s a rough day. It’s a sad day,” — Loralee Hamman, labor-and-delivery nurse, Baptist Health Fort Smith
  • “I’m going to get to continue delivering babies, helping moms,” — Loralee Hamman, Baptist Health Fort Smith
  • “I guess I’ll just bloat up and die in a month,” — Mark Pieper, dialysis patient, Chadron Hospital
  • “It’s a case that if you don’t, you die.” — Jim Wright, dialysis patient, Chadron Hospital
  • “It’s just unreal,” — Linda Simonson, spouse of dialysis patient, Chadron Hospital

What's Next

Baptist Health has no plan to replace obstetric care; nurses are seeking jobs elsewhere or returning to school. Chadron patients are relocating or traveling longer distances, and the hospital has not secured a new dialysis provider.