Lawrence Medical Center and HH Health Partner to Stabilize Healthcare in Lawrence County
Tuesday, 18 February 2025
Lawrence Medical Center in Moulton and the Huntsville Hospital Health System have announced a partnership to modernize healthcare in Lawrence County.
With rural hospitals across Alabama struggling to stay open, the LMC Board has concluded that a new approach is necessary to ensure the future of local, community health services. After an extensive study of facility challenges and financial pressures, the Board has determined the hospital will stop providing inpatient care as well as close the emergency department in order to modernize outpatient facilities.
“This is the best path forward to ensure that the people of Lawrence County continue to have availability of healthcare in our community,” stated LMC Board Chairman Gary Terry. “The care LMC provides today is overwhelmingly outpatient. Over 99% of our encounters each year are outpatient services such as primary care, imaging, lab testing, urgent care and physical therapy. On the other hand, having less than 1% of our total volume as inpatient care has placed the hospital in a situation that is not sustainable.”
In order to keep and enhance services in Lawrence County, the board voted to free up the financial resources necessary to modernize outpatient facilities and focus on the needs of the many outpatients.
Constructed in 1953, LMC is licensed as a 98-bed facility. Last year the hospital served over 60,000 outpatient and clinic visits.
“In order to maintain our license as an acute care hospital, significant resources are required to maintain an outdated facility that serves fewer than five inpatients each day,” said Terry. “The Board has concluded that all resources must be refocused on expanding high-quality outpatient care.”
To accomplish this for the long term, Terry said that the Authority will engage in a forty-year lease agreement with Huntsville Hospital Health System (HH Health) to operate outpatient services. LMC has had a long-standing affiliation with HH Health, but the two organizations have been financially separate.
The proposed structure, according to Jeff Samz, HH Health President and CEO, is like that which Huntsville has used successfully in Colbert, Jackson, Morgan, Limestone, and Marshall Counties. The structure maintains local involvement while shifting financial accountability and operational control to HH Health. Local tax resources that are currently consumed to support hospital operations will be used to create a building fund to build new and modern outpatient facilities.
“We are committing to help the Lawrence County Health Care Authority in finding a workable path. The crisis in rural healthcare in Alabama is a well-known fact. There is no easy solution,” said Samz. “I applaud the LMC Board for making a hard decision. Building new outpatient facilities means many more Lawrence County residents will benefit from this tax support than happens today.”
Once new outpatient services are in place, the current hospital facility would be vacated. A recent facility assessment indicates the hospital building is beyond any reasonable hope of repair. Updating the hospital facility to current code requirements is prohibitively expensive. HH Health will work with community leadership to find the best long-term use for the hospital property once it is vacated.
Inpatient and Emergency Department services will likely end by mid-2025. Samz said that the goal for HH Health is to expand the acuity of services provided at the urgent care locations with the intent of accommodating many of the patients using the emergency room today.
The agreement will ensure that 100% of Lawrence County support is invested in the new Lawrence County operation, and HH Health will pledge to reinvest 100% of any excess margin from services provided in the County back into Lawrence County facilities.
Any employees in good standing who are impacted by the closure of inpatient and emergency services will be offered an opportunity elsewhere in the HH Health System.
