Missouri hospital to close, cites ‘unstable healthcare environment’

Landmark Hospital of Cape Girardeau (Mo.), a long-term acute care facility, has shared plans to close “in the coming weeks,” according to a Sept. 10 news release.

The hospital has been open since early 2006 and is part of Cape Girardeau-based Landmark Holdings of Florida, which operates six long-term acute care hospitals across the U.S. The hospital operator sought Chapter 11 protection in early March and plans to find buyers for its facilities to relieve mounting financial challenges.

“Regrettably, closure is unavoidable due to insufficient qualifying patient volumes in the current U.S. healthcare environment,” the release said. “Small and rural markets like Cape Girardeau are particularly vulnerable, with specialty hospitals facing reduced referrals from local facilities amid broader industry challenges.”

Landmark pointed to factors like the reinstatement of stricter Medicare admission rules post-public health emergency, the rapid Medicare Advantage plan expansions with narrower coverage criteria, patient offset to larger markets nearby and rising costs that outpace reimbursements. 

The combined factors have reduced long-term acute care hospital access, left ongoing uncertainties and strained finances, despite advocacy for legislative relief. 

“We extend profound thanks to the Cape Girardeau community, our exceptional employees, physicians and partners for their unwavering support over nearly two decades,” the release said. “Landmark Hospital has been a pillar of healing and compassion, and we are committed to supporting staff through this transition.”

Becker’s has reached out to Landmark Hospitals for comment regarding the impacted employees and will update this story should more information become available.

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