FOR IMMEDIATE RELEASE
Lincoln Health Announces Closure of Heritage Living Assisted Living
Hugo, CO — The Lincoln Health Board of Trustees voted at its regular August Board of Trustees Meeting to close Heritage Living Assisted Living as part of a broader effort to stabilize the organization’s finances and safeguard essential healthcare services for the region. Like many rural hospitals across Colorado and the nation, Lincoln Health is facing mounting financial pressures that threaten the long-term sustainability of community health systems.
Currently, 50% of Critical Access Hospitals (CAHs) in Colorado are operating in the red, up significantly from just a year ago. Across the country, 195 rural hospitals have closed or stopped providing acute care services, with 44 closures in the last 19 months alone. The University of North Carolina has identified 10 Colorado hospitals at risk of immediate closure, while the Colorado Hospital Association reports that 85% of hospitals statewide lack sustainable margins.
Within this challenging environment, Heritage Living has experienced consistent operating losses that could no longer be absorbed without jeopardizing Lincoln Health’s broader mission. The Board’s decision was made easier by the presence of Aspen Leaf Assisted Living, another facility located in Lincoln County, which ensures residents and families continue to have access to this level of care locally.
“This was a difficult decision to make,” said Kevin Stansbury, CEO of Lincoln Health. “But as stewards of rural healthcare, we must ensure that Lincoln Health remains strong and able to serve thousands of residents who rely on our hospital and clinics every day.”
Lincoln Health is working closely with residents and families to provide individualized support throughout the transition, including assistance in securing alternative housing and ensuring continuity of care. The organization is also engaging with community partners to identify resources that may help ease this transition.
While the closure of Heritage Living represents a significant change for our community, Lincoln Health remains steadfast in its mission to deliver high-quality, compassionate care across Eastern Colorado. The Board and leadership team are also continuing to advocate for fairer reimbursement from insurers, sustainable public policy, and collaborative solutions that strengthen the future of rural healthcare.
Media Contact:
Megan Mosher
Lincoln Health Marketing & Public Information Officer
mmosher@lchnh.com