The St. Mary's Home will close at the end of this year, the Franciscan Health Community (FHC) recently announced.

The FHC is currently seeking alternative places to move current residents of the 100-bed nursing home-which is located in St. Paul's Highland Park neighborhood.

The FHC-an affiliate of Catholic Senior Services that operates senior residences and offers adult programs-said that it will close the nursing home due to “financial challenges and overall changes in health care.” Among the issues faced by St. Mary's Home is a federal fire code mandate that takes effect at the end of the year, as well as other necessary updates to the facility. The FHC also attributes the closure to “severe economic challenges” faced by nursing homes across the United States, including reductions in Medicaid and Medicare funding.

A total of 150 jobs will be eliminated as a result of the nursing home closure.

“This was an extremely difficult decision to make, but the current model of care is no longer viable given changes in health care funding combined with the costly improvements needed to our 74-year-old facility,” FHC President and CEO Joe Stanislav said in a statement. “Our primary focus right now is on making the transition for our residents and employees go as smoothly as possible.”

The FHC's adult day services and Southwest area meal programs-which share staff and facilities with St. Mary's Home-will also end. Those programs will conclude on November 30.

“We have been a vital part of the Twin Cities community for nearly 75 years and we expect to remain a reliable resource for seniors, home-bound, and terminally ill area residents for years to come,” FHC chair Ed Martini said in a statement.

The FHC said that its board has engaged a local consulting group and will spend the next few months creating “a new vision for the organization.” The organization also operates adult independent-living residences Highlands on Graham and Riverview Highlands in St. Paul.