Tucson's Select Specialty Hospital East closes; 99 laid off
Select Specialty Hospital – Tucson East, a 28-bed facility on the Tucson Medical Center campus, closed at the end of July, laying off 99 employees. Parent company Select Medical Corporation had announced earlier in July that the hospital would permanently close by September and filed a Worker Adjustment and Retraining Notification Act notice with state officials on July 9.
The facility at 5301 E. Grant Rd. provided care for brain injuries, cardiac conditions, and infectious diseases. Select Medical spokeswoman Shelly Eckenroth said the company was working to relocate Tucson East employees to its other locations, including Select Specialty Hospital – Tucson Northwest and Banner Rehabilitation Hospital – Tucson. The company did not respond to questions about specific reasons for the closure.
Arizona Democrats linked the shutdown to Medicaid cuts under the One Big Beautiful Bill Act, passed July 4, 2025, which reduces nearly $1 trillion in federal Medicaid funding over a decade. A January analysis by the Arizona Mirror estimated the act would cost about $110 million annually for 10 hospitals in or near the 6th Congressional District. Rep. Juan Ciscomani, who represents the district and voted for the bill, saw his spokesman C.J. Karamargin call any suggested link between the vote and closure "flimsy," noting Select Medical's history of investigations, including an $8.4 million False Claims Act settlement in 2021.