EATON — As part of Reid Health’s efforts to reduce expenses and streamline efficiencies in the face of a widening imbalance between rising costs and lagging reimbursements, Reid Health Urgent Care in Eaton will close next month, hospital officials announced in a press release this week.

“The final date of operations for the clinic will be Aug. 11. Affected employees will be reassigned to other Reid facilities. Reid officials are having conversations with a local business that has expressed an interest in moving into the space at 109B E. Washington-Jackson Road after the closure,” the release noted.

“We’re proud of the dedication and compassion shown by the Eaton Urgent Care team over the years,” said Misti Foust-Cofield, Vice President/Chief Nursing Officer for Reid Health. “Our remaining staff in Eaton have that same drive and will continue to provide excellent service to the community.”

Reid Eaton Family & Specialty Care at 550 Hallmark Drive will continue to care for patients in the area. The primary care team of Amy Goff DO; Carrie Kerby NP; Kimberly Reffitt NP and their staff is thankful for the opportunity to serve their neighbors in Eaton and the greater Preble County area.

“It’s a pleasure and an honor to care for our patients,” Dr. Goff said. “Our entire team works hard every day to have a positive impact on the health of the community.”

Reid Eaton Family & Specialty Care is also home to services from Reid OB/GYN, Outpatient Behavioral Health, Reid Pulmonary Care, and Rehabilitation Services. More information will be available in the coming days about expanded opportunities to receive care at the facility.

In a press release on July 11, it was announced that faced with an increasing gap between rising expenses and reduced reimbursement rates from insurance providers — in particular Medicare Advantage and Medicaid — Reid Health was taking steps to reduce costs and streamline efficiencies.

“Recently, healthcare systems across the country have been battling a widening imbalance between rising costs related to inflation and reimbursements that haven’t kept up with those costs, resulting in major financial issues unlike any Reid has dealt with in the past,” the release noted.

According to the earlier release, the factors at play include:

•Reduced volumes, especially in inpatient services

•Skyrocketing labor and supply costs driven by high inflation that exceeded 8 percent this year

•Tightening reimbursement from commercial and governmental payers that isn’t keeping up with rising expenses to provide care (the traditional Medicare increase was only 2 percent this year versus an 8 percent-plus inflation in Reid’s costs to provide that care)

•Continued challenges with effectively reduced payments from many Medicare Advantage programs when compared to traditional Medicare

•Difficulty receiving timely payment from various insurance providers

“The shortfall between increasing costs and the amount we receive is growing. The current model isn’t sustainable, and it’s forcing us to look for ways to reduce costs and be more efficient,” said Craig Kinyon, Reid Health President/CEO.

“Adding to the burden is the fact that insurance companies are slow to reimburse for patients with commercial insurance after care has been delivered. In many cases, claims are even outright denied despite having prior authorization,” The release noted. “The Reid Health Governing Board has been working with a consultant to identify opportunities to streamline organizational operations, reduce costs, and improve efficiencies.

“Over the past few weeks, Reid has taken steps to reduce duplication and costs within its executive leadership and middle management teams. Doing so allows Reid to streamline reporting structures and identify efficiencies for cost savings.”

As a result, some roles are being eliminated. Affected employees have the opportunity to apply for other open positions for which they’re qualified, and some have chosen to stay with Reid.

In addition to the Eaton Reid Urgent Care closure, Reid will close the Reid Employee Wellness, Sports Performance, and Massage Therapy departments along with the HealthWorks Fitness Center in Connersville. HealthWorks will close on July 31.