Job cuts have hit Peninsula Regional Medical Center – 43 in all.
The Transitional Care Unit that opened in 1997 will be shutting down.
It was designed to handle patients in need of sub-acute services in the Salisbury community.
At the time there was a delay in finding suitable places for those patients.
The 30-bed, non-acute unit on the third floor of the hospital was operated in a joint venture with Genesis Healthcare.
The hospital said there have a number of factors leading to its closure ranging from changes in the healthcare delivery model and advances in care to many patients who no longer require inpatient hospital rehabilitation.
In addition, many facilities have opened up in recent years to handle these patients including HealthSouth Chesapeake Rehab Hospital and the expansion of Genesis Salisbury Nursing and Rehab Center.