By Dennis Volkert
The city of Sturgis is pursuing options to restart some health care services for the community, in an attempt to fill a void left by the June 19, 2026, closure of Sturgis Hospital.
At the public comment segment at the Sept. 23 meeting of the city commission, Doug Terry, interim city manager, responded to a resident’s inquiry about the topic.
Terry said a prospectus was developed and sent to providers in the region. It includes an outline of needs that have been determined, with guidance from the city’s planning and zoning departments and economic development corporation, seeking limited medical service, such as an emergency room, urgent care, laboratory, imaging and orthopedic rehabilitation.
“Obviously, we don’t have the doctors and support staff (available) to support cardiac intervention or OB/gynecology,” Terry told Sturgis Sentinel this week.
Currently, the closest full-service hospital facilities are located in LaGrange, Ind., Coldwater and Three Rivers.
Why is the city getting involved?
“We are responsible for the health, safety and welfare of our community,” he said. “It’s not only (providing) water, sewer and electricity. We’re trying to facilitate a partnership (to) provide health care for our citizens.”
Since the city commission meeting, two CEOs have expressed interest in the proposal, Terry said. So far, he is not at liberty to reveal specifics, he said.
Terry said if an organization does choose to come to Sturgis, it’s uncertain if the vacant hospital building could be used for services.
Three days prior to closing in June, the hospital’s leadership stated that financial challenges facing rural health care providers preceded their decision to close. That included a declining reimbursement rate, an increase in operational expense and a decrease in patient utilization.
For several years prior, the hospital had tried to remain financially viable.
In August 2023, Sturgis Hospital was designated as a Rural Emergency Hospital by Michigan Department of Health and Human Services and Centers for Medicare & Medicaid Services. It was the first facility in Michigan to receive the designation.
Key elements of an REH include enhanced emergency medical services, access to life-saving care, streamlining of patient transfer and potential for an increase in federal funding.
According to National Conference of State Legislatures, REH was established by Congress through the Consolidated Appropriations Acts of 2021, with an intent to reinforce access to outpatient medical services and reduce health care disparity in areas that may not be able to sustain a full-service hospital.
Beginning in January 2023, critical-access hospitals and small, rural hospitals with no more than 50 beds were allowed to apply for the REH designation and receive Medicare payment to provide emergency services.
In 2022, a $645,000 loan was approved by Sturgis City Commissioners, using American Rescue Plan funds, intended to bridge a gap before an $11 million grant from the state was anticipated.
Terry places no blame for the current state of health care in Sturgis.
“I don’t think it’s anybody’s fault,” he said. We’re in a national trend. A decrease in Medicare and insurance reimbursement has put pressure on rural hospitals generally.”
“If we bring a new provider, it will have to overcome obstacles previously faced by the hospital,” Terry said. “We need to explore those type of things which hurt Sturgis Hospital … and (develop) a plan that can render adequate revenue to sustain the hospital.”
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