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Sturgis Closure May Be ‘First of More’ for Michigan Rural Hospitals

The 84-bed hospital had about 300 workers and became Michigan’s first rural emergency hospital in 2023 before closing over financial losses.

  • Sturgis Hospital shuttered its doors on June 19 after more than a century serving St. Joseph County, citing "years of ongoing financial challenges" facing rural health care providers.
  • Rural hospitals face systemic pressures including declining payer reimbursements and rising operating costs, often struggling to maintain services for populations that rely heavily on Medicare and Medicaid.
  • Staff learned of the closure during a town hall just 70 hours before operations ceased; nurse Beth Kelley, a 32-year employee, described the atmosphere as filled with "shock" and "devastation."
  • Sturgis Director of Public Safety Ryan Banaszak noted that ambulance transport distances increased from 2 miles to 25 miles, creating a "substantial operational effect" on emergency response capabilities.
  • Dr. Andrea Wendling, a family doctor in Boyne City, worries this is "the first of more closings that we're going to see over the next few years," as poor preventative care access drives rural hospital failures.
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Sturgis closure may be ‘first of more’ for Michigan rural hospitals

Beth Kelley spent most of her life working at Sturgis Hospital. For 32 years, the nurse said it was “unusual to walk down the hall and not recognize somebody.”

·New York, United States
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Bridge Michigan broke the news on Wednesday, July 8, 2026.
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