Pennsylvania-based Vibra Healthcare LLC has detailed plans to close its Vibra Hospital of Fort Wayne at the end of the month, resulting in the layoffs of 120 employees. In a statement to Inside INdiana Business, the company cites recent changes in healthcare reimbursement as the main reason for the closure.
The facility, which leased space at Parkview Hospital Randallia in Fort Wayne, is a long term acute care hospital. Vibra Healthcare says it has begun the wind-down process at the Fort Wayne facility, which will official close on January 31.
“We very much regret that we had to make this decision. It has not been an easy one," said Sean McCarthy, group division president. "The recent changes in healthcare reimbursement have made this hospital extremely difficult to maintain. We will do everything possible to minimize the impact on patients, their families and our dedicated employees."
McCarthy says Medicare is in the second year of a two-year phase-in of changes in reimbursement for long term acute care hospitals. He says the changes are producing a significant reduction in patient referrals and Medicare reimbursement.
The company says its other facility in Crown Point will remain open.