The only skilled-nursing and rehabilitation facility in central Oahu is planning to close this summer after more than 55 years of operation.

Wahiawa General Hospital said it plans to shut down its 115-bed Wahiawa Nursing and Rehabilitation Center July 22, citing insufficient insurance reimbursements and continued financial challenges.

It’s also been struggling to hire and retain staff during the COVID-19 pandemic, officials said.

“This was a difficult — but necessary — decision. We have been assessing the viability of our WNRC Service for several years now, and we have made the determination that we will not be able to continue to provide this service as we attempt to move the organization into a more sustainable future,” the hospital said Wednesday in a news release.

The long-term care center currently has 60 patients. Hospital administrators said many of the patients are covered by the Supplemental Security Income program or Medicaid, which have low reimbursement rates.

Wahiawa General, a small independent hospital, had received millions in taxpayer dollars to keep it afloat in the past, but it is still losing over $1 million a year. It also doesn’t have the money to improve existing facilities, such as the long-term nursing center, which was built in 1966.

The statement said that closing the long-term care facility will enable the hospital to focus “on the growth and sustainability of our communities’ much-needed Emergency Department, outpatient services, Acute Care services and Specialty Clinic offerings, while we continue to plan for additional strategies to support our kupuna.”

Plans call for expanding Wahiawa’s Acute Care Unit from 21 beds to 66 beds, providing “as many jobs as possible” for those currently working in the long-term care facility, the release said.

John McDermott, the state’s long-term care ombudsman, said Hawaii can’t afford to lose nursing homes, especially when the state’s senior population is increasing so rapidly. The nearest alternatives for skilled nursing and rehabilitation are in Kaneohe and Pearl City.

Wahiawa General said it will be working with residents and families to help to identify and begin transitioning residents to other care settings.

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The Associated Press contributed to this report.