Regency Hospital, a Meridian facility that primarily provided extended care to patients with respiratory disorders, will close on or about March 13, according to its website.
The 40-bed, long-term acute care hospital is on the second floor of Baptist Anderson Regional Medical Center-South. It focused on weaning medically complex patients off of mechanical ventilation and helping them breathe independently.
Regency Hospital is owned by Pennsylvania-based Select Medical, one of the largest operators of critical illness recovery and rehabilitation hospitals in the country.
The decision to close the hospital was based on business operations, and the facility is no longer accepting patients, Select Medical Chief Communications Officer Shelly Eckenroth said in an email to Mississippi Today. The company has no plans for the hospital to reopen.
As of Monday, four patients remained in the hospital, Eckenroth said.
“Their treatment will continue until they are discharged or transferred to an appropriate facility for ongoing care,” she said. “Our case managers are working closely with patients and their families to arrange these transitions.”
Ochsner Specialty Hospital, a 49-bed, long-term acute care hospital about a block away from Regency Hospital, will continue to provide the same level of care to the community, Eckenroth said.
“Ochsner Rush Health continues to operate Ochsner Specialty Hospital with no changes to our current operations,” said Ochsner Rush Medical Center CEO Allen Tyra. “Our focus remains on providing high‑quality, compassionate care to the patients and families we serve, and we will continue to evaluate the needs of our community as we always have.”
Long-term acute care hospitals serve patients with inpatient stays longer than 25 days, and many patients come from an intensive or critical care unit. The hospitals provide services such as respiratory therapy, head trauma treatment and pain management, and patients are often discharged to a skilled nursing or long-term care facility.
The seven long-term acute care hospitals in Mississippi are in Batesville, Greenville, Gulfport, Jackson and Meridian, according to the Mississippi Department of Health’s facility directory. Select Medical owns three of the facilities in addition to Regency Hospital.
Select Medical operated nearly 140 hospitals nationwide, including 104 critical illness recovery hospitals as of December. The health care company also operates about 2,000 outpatient rehabilitation clinics in 39 states.
It reported $5.5 billion in revenue in 2025, a 5% increase over the previous year. Select Medical also closed a 24-bed critical illness recovery hospital in Sioux Falls, South Dakota, in late 2025.
Payments to long-term acute care hospitals for Medicare patients have changed over the last decade, resulting in lower reimbursements for some patients at the same time as health care costs, including staffing expenses, have risen.
A growing proportion of Medicare patients are covered by Medicare Advantage plans, some of which refuse to approve care at long-term acute care hospitals, according to a U.S. Senate report published in 2024. In Mississippi, the number of patients covered by Medicare Advantage plans has more than doubled since 2019.
In July, the Centers for Medicare and Medicaid Services finalized an annual rate increase for long-term acute care hospitals, but some advocates say the bump is not large enough.
Concerns continued about overall payment increases, Ashley Thompson, the American Hospital Association’s senior vice president for public policy analysis and development, said in a July statement responding to the rate increase. She said long-term acute care hospitals “will have an increasingly difficult time caring for some of the sickest Medicare patients and may be unable to continue relieving pressure on their acute-care hospital partners.”
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