Members of the Marshall City Council met with leadership at Fitzgibbon Hospital Monday afternoon to discuss the financial struggles affecting many rural hospitals across the state.

Fitzgibbon President and CEO Angy Littrell spoke about some of the challenged the hospital has faced since the COVID-19 pandemic, citing inflation and rising costs as the main problems for Rural Prospective Payment System (PPS) hospitals like Fitzgibbon. She explains that roughly 77 percent of business that Rural PPS hospitals receive is reimbursed at less than the cost it takes to provide the service.

 

Due to the recent financial struggles, the Fitzgibbon Hospital Board of Trustees approved a series of cost-cutting measures in December 2025 expected to save more than $2 million dollars annually. The measures included the closure of two outlying primary care clinics, closure of the inpatient behavioral health unit and ceasing operations of Fitzgibbon Home Health and Hospice services. These struggles aren’t unique to Fitzgibbon, as Littrell says about 62.5 percent of Rural PPS hospitals operate with negative margins.

One possible solution that was brought up during the meeting was forming a public hospital district, which would use taxes to provide an additional revenue stream.

 

Littrell says she’s been in contact with local legislators and county leaders to learn more about that process. She does note that it would require voter approval. Council members took no action following its discussion with Littrell. The Marshall City Council will next meet on Tuesday, February 17th.