Georgia Hospital Ends Birthing Services – Medicaid Cuts Cited
St. Mary’s Health Care System Consolidates Labor and Delivery Services
Table of Contents
Updated September 17, 2025
Service changes in Lavonia and Athens, Georgia
St. Mary’s Health Care System, based in athens, Georgia, announced on September 17, 2025, that it will consolidate labor and delivery services from St. Mary’s Sacred Heart Hospital in Lavonia, Georgia, to its St. Mary’s Hospital in Athens. This decision also includes the closure of St. Mary’s Medical Group’s Clear Creek OB-GYN practice in Lavonia, with both transitions scheduled for late October.
Factors Driving the Decision
The health system cited “meaningful challenges” as the primary driver for this consolidation. According to a system news release, an 18-month evaluation period included attempts to recruit physicians, establish new partnerships, and secure additional funding. However, demographic shifts in the region, difficulties in physician recruitment, increasing numbers of patients seeking labor and delivery care outside the system, and recent reductions in Medicaid funding ultimately solidified the decision.
Declining birth rates at Sacred Heart Hospital also contributed to the change. The hospital has consistently delivered fewer than one baby per day for the past several years, and this trend is projected to continue.
Support for patients and Employees
St. Mary’s Health Care System is committed to supporting both patients and employees during this transition. The system will assist impacted employees in finding alternative positions within st. Mary’s, ensuring continuity of employment where possible. Details regarding patient care continuity will be communicated directly to those affected.
