HUTCHINSON, Kan. — After many years operating at a net loss in Reno County’s competitive senior living market, Dillon Living Center (DLC) will close its doors at the end of November 2016.

Dillon Living Center is a part of Hutchinson Regional Healthcare System (HRHS) and provides services to 71 residents in both assisted living and skilled nursing care. The closure comes after a market study that indicated the facility would need millions in renovations and expansions to keep up with the changing needs in a community where senior living options are abound.

 “Quality care is a priority, and Dillon Living Center needs major renovations to compete over time,” Ken Johnson, President and CEO, HRHS, said. “Given the supply of senior living options in Reno County — many of which are operating below capacity — proactively closing the center has become the best alternative.”

The HRHS management team met with DLC residents and staff to announce the closing and discuss transition options.

 “The hardest part of this decision is the burden we’re placing on our residents, their families, and our staff,” Johnson said. “Moving to a new home or place of work is stressful, so our priority is to ease that transition for everyone.”

Currently, there are many senior living organizations in Reno County with approximately 200 open beds. Dillon Living Center plans to coordinate with local providers to make researching a new facility as simple as possible.

“We want to facilitate conversations with other providers, and help our residents make the choice that’s best for their individual needs,” Peter Mungai, Dillon Living Center’s Executive Director, said. “We know each of our residents on a personal level, and we want to ease the transition to another provider.”

Dillon Living Center employs approximately 70 full-time equivalents, and Johnson said employees are encouraged to apply for other jobs within the HRHS system. Employees can expect pay at least through Sept. 6, and will not be released until the number of residents decreases.

Repurposing the building located at 1901 E. 23rd is a priority for both the hospital board and executives. “We are exploring opportunities to either move or expand services into that space,” Johnson said. “Rest assured that this prominent building with the iconic tile roof will not sit idle.”

Dillon Living Center experienced some financial burdens due to recent cuts to the state’s KanCare program. However, Johnson said problems arose before the cuts, and the state’s actions only solidified the decision.

Johnson said the overall health of HRHS is strong, and closing Dillon Living Center is a difficult, but necessary, step. “We are constantly looking at how we can effectively address the healthcare needs of our region,” Johnson said. “Closing Dillon Living Center is a proactive decision which helps us be better stewards of our resources.”