Northern Light Inland Hospital and its clinics in Waterville are closing down operations.

Parent company Northern Light Health announced the closure Thursday, saying the shutdown is being caused by higher operational costs, unsustainably low reimbursement rates, and a tight labor market.

“The hospital has successfully served the people of Waterville and the surrounding communities for many years, however the availability of health resources available in the community have increased over time, making current operations at Inland unsustainable,” said Northern Light Health in a statement.

Northern Light Inland Hospital will stop services May 27 and the facility will formally close operations June 11.

Northern Light Health says Inland team members will be connected to new opportunities within the organization and beyond.

The parent company said patients will have other options in Waterville while it concentrates on serving more rural areas.

“Waterville and the surrounding communities are within close proximity to a number of healthcare options, and this decision allows Northern Light Health to direct resources to those regions where access to care is more limited.” said Northern Light Health in a statement.

This decision does not affect Northern Light Continuing Care, Lakewood, also located in Waterville and there are no plans to close any other Northern Light hospital.

Democratic 1st District Congresswoman Chellie Pingree released a statement Thursday on the closure of the hospital.

“The closure of Northern Light Inland Hospital is a devastating loss for patients and the entire Waterville community—particularly for low-income Mainers who already face barriers to affordable, high-quality healthcare,” said Pingree. “My thoughts are also with the providers and staff who have worked so hard to deliver high quality care over the years.”