Why It Matters
Merrimack Health will shut down obstetric services at its Methuen campus on August 1, eliminating 24 maternity beds and forcing hundreds of families to deliver at Lawrence General Hospital instead. The closure marks the 12th maternity unit to close in Massachusetts since 2010, part of a nationwide trend driven by low Medicaid reimbursement rates, high malpractice costs, and declining birth rates.
Approximately 85 employees will be affected, though most are expected to find positions elsewhere in the health system. Nearly 800 babies are delivered annually at the Methuen facility, which has served generations of local families.
What Happened
Merrimack Health CEO Diana Richardson announced April 1 that the three-campus system would consolidate maternity and neonatal services at Lawrence General Hospital, located less than two miles from the Methuen campus. The Methuen unit currently operates 24 maternity beds and 10 special care nursery bassinets, averaging fewer than two deliveries per day.
Lawrence General Hospital already handles roughly two-thirds of the health system’s births, delivering more than 1,500 babies annually in its 33-bed maternity unit. Richardson stated the consolidation would create “a more seamless experience for mothers, babies, and families” and eliminate the need for patient transfers during high-risk situations.
Staff members at the Methuen campus, some of whom have worked there for a decade, expressed concern about job security and patient transitions. One nurse in the special care nursery, who is expecting her first child at the hospital where she and her mother were born, described uncertainty among employees about their future roles.
By the Numbers
• 12 maternity service closures in Massachusetts since 2010
• 800 babies delivered annually at Methuen Hospital
• 1,500+ babies delivered annually at Lawrence General Hospital
• 85 employees affected by the consolidation
• 73% of Methuen Hospital’s 2023 patient revenue came from Medicaid and Medicare
• About one-third of all Massachusetts births are paid for by Medicaid
Zoom Out
Massachusetts has no official maternity care deserts—defined as counties without hospitals or birth centers offering obstetric care—according to the March of Dimes. However, five closures have occurred in Gateway Cities since 2010, and Mercy Medical Center in Springfield suspended its maternity unit in December without announcing a reopening timeline.
The state’s closure rate mirrors national trends, according to maternal health advocates. Obstetric units face financial pressure from low Medicaid reimbursement, high malpractice insurance premiums for OB-GYNs, and costly 24-hour staffing requirements. Declining birth rates compound the problem, making low-volume units harder to sustain.
Boston University health policy researchers note that service closures disrupt established care relationships and force patients to navigate unfamiliar systems during vulnerable periods.
What’s Next
The Methuen maternity unit will cease operations August 1. Merrimack Health stated it would work to place affected staff in open positions at Lawrence General Hospital or other facilities within the system. Patients currently receiving prenatal care at Methuen will need to transition to Lawrence General or other providers before the closure.