Johnson Memorial Health to phase out maternity services due to financial struggles
Feb 10, 2026
Johnson Memorial Health phasing out maternity care services
FRANKLIN, Ind. (WISH) — Johnson Memorial Health announced in a Tuesday press release that it will be phasing out its obstetrics services and Maternity Care Center on its Franklin campus.
The hospital blamed decreasing federal and
state insurance reimbursement rates and the rising costs of medical services as the main reasons for the closure.
In addition to the closure of the maternity center, the hospital will implement staff reductions and other cost-cutting measures.
Johnson Memorial Hospital president and CEO, Dr. David Dunkle said in a press release that county hospitals have been struggling since the COVID-19 pandemic. Dunkle also said that Indiana Medicaid reimburses the hospitals for 57% of the cost of care and Medicare reimburses hospitals for 82% of the cost of care.
“At JMH, about 70% of the people we take care for are insured by Medicaid or Medicare,” said Dunkle.
Over the last 10 years, nine Indiana hospitals have closed, with four of those closures occurring since 2022. 15 hospitals have closed their obstetrics departments since 2020.
There is no other places in Johnson County that provide maternity care.
“This is such a difficult decision because delivering babies and caring for them and their moms has been such an important part of our mission for decades. Also, we have an outstanding obstetrics team that provides great care for mothers and their babies,” said Dunkle.
The process of phasing out the Maternity Care Center is expected to take several months.
Dunkle said that expectant parents who are currently patients at Johnson Memorial Health will be informed of their long-term continuity of care plans during their next scheduled appointments.
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