Methuen Hospital to Close Maternity Unit in August, Marking Massachusetts’ 12th Obstetric Service Closure Since 2010
Why It Matters
Massachusetts is facing a growing maternal healthcare access crisis as Methuen Hospital prepares to shutter its obstetric unit, becoming the 12th facility in the state to eliminate maternity services since 2010. The closure raises serious concerns about the long-term sustainability of community-based maternal care, particularly in lower-income Gateway Cities where Medicaid dependency and workforce shortages are squeezing hospital margins to the breaking point.
The trend highlights a broader tension between financially unsustainable government reimbursement rates and the real-world impact on families who depend on local delivery services — a pattern that has plagued Massachusetts healthcare since its landmark coverage expansion two decades ago.
What Happened
On April 1, Merrimack Health announced plans to close the obstetric unit at its Methuen campus — formerly known as Holy Family Hospital — effective August 1. The health system will consolidate maternity and neonatal services at Lawrence General Hospital, located less than two miles away.
The closure will eliminate 24 maternity beds and 10 special care nursery bassinet beds at the Methuen facility. Approximately 85 employees will be affected by the consolidation, though Merrimack Health said it expects most impacted staff will have the opportunity to transition into positions at Lawrence Hospital or elsewhere within the health system.
Merrimack Health CEO Diana Richardson framed the consolidation as a quality-of-care improvement. “We are bringing together two trusted programs that will allow for a more seamless experience for mothers, babies, and families and greater collaboration among providers,” Richardson said in a statement.
Dr. George Kondylis, chief physician executive at Merrimack Health, cited patient safety as a driver of the decision, noting that “low patient volume makes it challenging for clinicians to maintain competencies, retain staff, and sustain the delivery of high-quality care.”
By the Numbers
- 12th closure: The Methuen unit will be the 12th maternity service to close in Massachusetts since 2010, five of which have occurred in Gateway Cities.
- 73%: Nearly 73 percent of Methuen Hospital’s patient revenue came from Medicaid and Medicare as of 2023.
- ~800 deliveries annually occur at the Methuen campus, compared to more than 1,500 at Lawrence Hospital each year.
- 85 employees will be directly affected by the consolidation of services.
- 120-day review process: Merrimack Health has notified the Massachusetts Department of Public Health, triggering a formal review period that will include a public hearing.
The Financial Reality Behind Closures
Hospitals across the country — and particularly in Massachusetts — are abandoning obstetric services due to a combination of low Medicaid reimbursement rates, skyrocketing malpractice insurance premiums, costly round-the-clock staffing requirements, and declining birth rates. Medicaid pays for approximately one-third of all births in Massachusetts, and OB-GYNs carry some of the highest malpractice insurance costs of any medical specialty.
The Methuen unit averages fewer than two deliveries per day, while its special care nursery averages a daily census of fewer than one infant — figures that make sustaining a full-service maternity operation economically difficult regardless of the level of community need.
Alan Sager, a professor at Boston University School of Public Health, warned that hospitals are not “interchangeable parts,” and that closing a service “rips apart the fabric of care” where patients have long felt comfortable and trusted. Federal pressure on Medicaid spending is expected to further strain safety-net hospitals in Massachusetts, potentially accelerating future closures.
Zoom Out
Chloe Schwartz, Massachusetts director of maternal and infant health initiatives for the March of Dimes, noted that the rate of maternity closure in Massachusetts mirrors national trends. “The only difference being, we started with more to begin with, so we don’t have any official deserts yet,” Schwartz said.
While Massachusetts currently has no official maternity care deserts — defined as counties with no hospitals, birth centers, or obstetric providers — advocates warn that continued closures, combined with anticipated cuts to Medicaid at the federal level, could rapidly change that status. The December 2025 suspension of Mercy Medical Center’s maternity unit in Springfield, with no announced timeline for reopening, illustrates how quickly access can erode.
What’s Next
The formal 120-day Massachusetts Department of Public Health review process is now underway and will include a public hearing. However, even if DPH determines that the Methuen maternity unit constitutes an essential service, state officials have limited legal authority to prevent hospital service closures.
The August 1 closure date remains in effect barring regulatory intervention. Lawrence Hospital’s existing 33-bed maternity unit and 10 special care nursery beds are expected to absorb the additional patient volume from the Methuen campus once the consolidation is complete.