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HealthSouth pulling plug on Terre Haute hospital

August 7, 2007

Looming shortfalls with Medicare reimbursements are among the business reasons HealthSouth Corp. cited for announcing yesterday that it will shutter its long-term acute-care facility in Terre Haute, the Tribune-Star reported today. About 80 full-time and 25 part-time workers were told the facility will close Oct. 4.

Many patients served by the facility needed care following surgery or other procedures at traditional hospitals. It currently has 15 patients.

A spokesman for the Birmingham, Ala., giant said the decision was driven by a new rule that allows only 25 percent of patients to come from one hospital.

After receiving patients from nearby Union Hospital Center and Terre Haute Regional Hospital, the hospital would have needed to gain the remaining 50 percent from hospitals from Bloomington, Vincennes and other cities farther away.

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