In a stunning show of solidarity, all 14 nurses in Sweetwater Hospital Association's labor-and-delivery unit have submitted two-week resignation notices after learning the hospital will shut down maternity services on Feb. 28. The decision effectively wipes out local obstetrics care for Monroe County and surrounding communities, raising fears that more births will happen in emergency rooms or on the road during long drives to distant hospitals. Families and clinicians are scrambling for answers as Sweetwater begins shifting pregnant patients elsewhere.
Staff speak out
In a letter obtained by staff and reported by WATE, the nurses wrote, “Due to a significant breakdown in trust, we no longer feel we can effectively function as employees of SHA.” Veteran nurse Sarah Ortez, who has worked at the hospital for about 20 years, called the announcement “devastating” and warned that longer travel times will mean higher risks for both mothers and babies. Nurses told reporters they want the public to push lawmakers for policy changes that would stabilize rural obstetrics services.
Hospital cites finances and staffing
The Sweetwater Hospital Association says the labor-and-delivery unit will close Feb. 28 because of ongoing trouble maintaining specialty provider coverage and financial strain from low reimbursement rates paired with rising costs, according to WVLT. Hospital officials say gynecology and pediatric services will remain available and that staff will help prenatal patients transition to other nearby providers. SHA declined to discuss specific compensation issues but did provide a letter from CEO Andrea Henry in response to questions, the outlet reported.
Public filings add fuel to backlash
Public tax filings reviewed by ProPublica show board member and staff physician Dr. Ken Kozawa received nearly $2.9 million in compensation from SHA in the most recent filings. Separate filings listing more than $3 million in private-practice income have also been reported by WATE, a detail nurses cite as they question leadership priorities. Those pay figures have become a lightning rod in a broader fight over whether the hospital’s financial problems are primarily about reimbursement structures or local management choices.
Policy pressure and national context
Sweetwater’s move fits into a growing pattern of rural hospitals cutting maternity units, a trend analysts say has picked up speed in recent years. Becker's Hospital Review has tracked multiple obstetrics closures or pauses just this month. On the policy front, federal lawmakers introduced the Keeping Obstetrics Local Act on June 12, 2025, a bill that would increase Medicaid payments, establish standby payments for low-volume maternity units and extend postpartum coverage to a full year, according to Congress.gov. Nurses and advocates argue that legislation like this is the kind of long-term funding fix rural hospitals need to keep labor-and-delivery services alive.
What this means for families
Local nurses warn that with SHA’s obstetrics services gone, expectant parents across Monroe County and nearby areas will face longer and more expensive trips to hospitals in Athens, Knoxville or Chattanooga, increasing reliance on EMS and the Sweetwater emergency department, as previously reported when the closure prompted a mass nurse resignation. Monroe County officials say they understand the public’s concern and appreciate the hospital’s transparency as the transition unfolds. Residents and clinicians alike say the next few weeks will be critical to making sure pregnant patients are handed off to new providers without dangerous gaps in care.
Next steps and resources
According to the hospital’s public site, SHA plans to contact current prenatal patients directly to help arrange care at nearby obstetric providers and will continue offering some outpatient women’s-health services. Patients looking for details can find contact information and resource links on the Sweetwater Hospital Association website. Advocacy groups say they will keep pressing state and federal officials to consider targeted payment models that could head off similar maternity-unit closures in other rural communities.
