Keene, N.H. — Cheshire Medical Center announced this week it will close its 20-bed Farnum Inpatient Rehabilitation Unit at the end of October and cut a dozen positions as part of a plan to reduce operating losses and return to a positive margin.
What the hospital is changing
In a statement released Friday, Dr. Joseph Perras, CEO and president of Cheshire Medical Center, said the hospital will stop admitting new patients to the inpatient rehab unit. The hospital employs about 39 staff members associated with the unit; most have been reassigned, the statement said, while five were laid off. The hospital also eliminated seven additional administrative and leadership positions, bringing the total position reductions to 12.
The Dartmouth Health system, which includes Cheshire Medical Center, confirmed the unit will close at the end of October. Current inpatients will be allowed to complete their prescribed courses of treatment at Farnum, hospital officials said.
"We have been in communication with other area hospitals that provide inpatient rehabilitation services and are committed to making the transition as smooth as possible for our patients,"
Perras emphasized the move will not affect outpatient rehabilitation services provided at Cheshire Medical Center.
Hospital finances and rationale
Hospital leaders described the decision as part of a broader financial turnaround strategy. Perras said the inpatient unit has had a low occupancy rate and that the expenses of keeping it open had become "unsustainable." He added that the hospital has been working over the last six months to address substantial losses and move toward a breakeven operating margin.
Cheshire Medical Center reported a nearly $3 million loss from operations for the fiscal year that ended June 30, according to the hospital’s financial disclosure on the Electronic Municipal Market Access database. That represents an improvement from roughly $8 million in losses the prior year, the statement said.
Local impact and continuity of care
Hospital officials said they are coordinating with other regional hospitals that provide inpatient rehabilitation to ensure patients who need continued inpatient rehab can be transitioned without interruption. The hospital noted outpatient rehabilitation programs will remain in place for patients who do not require an inpatient level of care.
- Unit closing: Farnum Inpatient Rehabilitation Unit, 20 beds
- Staffing changes: Most of 39 unit employees reassigned; 5 laid off; plus 7 administrative/leadership positions eliminated
- Timing: Unit will stop new admissions immediately and close at the end of October
- Financials: Nearly $3 million loss in most recent fiscal year; down from about $8 million the previous year
- Services retained: Outpatient rehabilitation services continue
The hospital framed the cuts as necessary for preserving its mission as a not-for-profit provider, saying it needs a positive margin to invest in clinical services, employees and infrastructure.
Questions for patients and families
Patients or family members with concerns about ongoing care should contact Cheshire Medical Center directly to discuss discharge planning, transfer options and outpatient services. Hospital officials said they have been communicating with other area providers to coordinate placements for patients who continue to need inpatient rehabilitation.
| Item | Detail |
|---|---|
| Unit beds | 20 |
| Employees associated with unit | Approximately 39 |
| Laid off | 5 |
| Other positions cut | 7 administrative/leadership roles |
| Recent operating loss | ~$3 million |
Community stakeholders, including patients, families and local health advocates, are likely to watch closely as the hospital implements the changes. The closure removes one local option for inpatient rehabilitation care — traditionally used by patients recovering from major surgery, stroke, injury or other conditions that affect mobility.
Hospital officials said outpatient services remain available and emphasized their commitment to minimizing disruption for patients who currently receive care at Farnum. They also framed the changes as part of broader steps to stabilize the hospital’s finances and preserve its ability to invest in services over the long term.
Cheshire Medical Center is part of the Dartmouth Health system. For direct inquiries, patients and families should contact the hospital’s patient services or care coordination teams for assistance with transitions and referrals.
This report was produced from a story originally published by The Keene Sentinel and republished through the Granite State News Collaborative.
