Provenant Mercy Hospital, a 194-bed facility in Denver, ceased providing inpatient services last week.
It is the first general-service hospital to close in Denver since 1989. Its board approved the action last week. Sixteen hospitals now operate in Denver.
Provenant Mercy lost $4.3 million on operating revenues of $44 million in its fiscal year ended June 30, 1994, spokesman Randy Shook said. Average occupancy was 34%. About 70% of its patients were covered by Medicaid or Medicare.
Losses are expected to grow to $6 million this year because of insufficient reimbursement from government programs and declining demand for inpatient services, Shook said.
Its owner, Provenant Health Partners, will convert the facility to an outpatient center. Provenant operates two other hospitals in Denver and is owned by the Sisters of Charity of Cincinnati healthcare system.
The system's other Colorado hospitals also have taken steps to cut costs. Earlier this month, Penrose-St. Francis Hospital in Colorado Springs said it would cut 400 jobs over the next few years.
Provenant Mercy employs 757 people and will provide placement services for them. Some may be transferred to other Provenant facilities or to Presbyterian/St. Luke's Medical Center, a competing Denver hospital contracted to take over Mercy's family practice program.