Winston County’s lone hospital announced Friday it will shutter operations by the end of the year.

The 59-bed Lakeland Community Hospital in Haleyville cited plummeting reimbursements from the government and commercial insurers, with nearly $2 million loss, as the reason behind the closure.

“Our team explored every viable option to avoid closing the hospital,” said Debbie Pace, chief executive office of Lakeland Community Hospital in a press release.

“Unfortunately, as with many other rural healthcare facilities in the Southeast, we are unable to continue operations due to such drastic reductions in reimbursement. I want to thank the Lakeland hospital staff, physicians and board for their dedication and service to the community.”

The closure leaves Winston County residents with few choices for medical care; the nearest hospitals are Cullman Regional and Walker Baptist Medical Center in Jasper.

Approximately 87 employees will be affected by the closure, the press release stated. Lakeland employees will be given priority to fill open positions at other area hospitals in the same network and employees will be assisted in identifying other healthcare entities in the area that are seeking employees.

Employees will continue to be paid and benefits will continue for those who choose to stay on through the process of winding down hospital operations.

The Medical Detox program at Lakeland will be transferred to Russellville Hospital in Russellville. Other services or departments may be combined or transferred depending upon regulatory requirements, according to the press release.

Pace said hospitals in rural communities are particularly vulnerable closure due to the Affordable Care Act (ACA) of 2010.

“Disproportionate Share Hospital (DSH) payments to rural facilities have been drastically reduced leaving smaller rural facilities to make up the cost, operate at a loss, or even close,” she said. “Additional reductions from CMS reimbursements for low volume adjustments for rural hospitals and further reductions from commercial insurance carriers have made operating rural hospitals extremely difficult.”

Lakeland will be the eighth rural Alabama hospital to close in recent years.

Dale Quinney, executive director of the Alabama Rural Health Association (ARHA), a non-profit organization dedicated to preserving and enhancing the health of rural Alabama citizens, said that of the 46 rural hospitals that report annual income, 34 were operating at a loss.

‘These counties need people if hospitals are to survive,” Quinney told AL.com in an August story. “They are magnets of economic opportunity. Why would people or businesses move to a county without adequate medical care?”

Congressman Robert Aderholt released the following statement Friday after learning that Lakeland Hospital will close.

“I am deeply saddened to learn of the closing of Lakeland Hospital. As the only hospital in Winston County, its closure will be felt far outside of Haleyville. In addition to the Haleyville community, and the entire area being impacted, dozens of people will lose their jobs at what should be a joyous time of year. I am reaching out to the mayor and other local leaders to see how my office can best help find a solution to this closure.”

“Obamacare continues to lead to fewer choices and fewer hospitals, particularly in rural America. This makes the fact the House passed a repeal plan this year only to see it fail in the Senate, all the more disappointing and devastating.”