TUPELO, Miss. — A Mississippi hospital seeking to offset reduced revenues is closing its skilled nursing unit and community health department in addition to scaling back its inpatient mental health center.

Northeast Mississippi Daily Journal reports the president of North Mississippi Medical Center-Tupelo said in a statement Tuesday the decisions weren’t easy but strong financial performance is needed to continue providing “the best care.” The changes affect more than 50 NMMC employees.

Hospital president David Wilson says the human resources team is identifying for all employees impacted transfer opportunities into comparable positions.

The cuts come after NMMC-Tupelo revealed it’s losing $1 million a month from unilateral contract changes by the state’s largest private insurer. The hospital sued Blue Cross & Blue Shield of Mississippi on Aug. 24 in a Lee County state court.

Information from: Northeast Mississippi Daily Journal, http://djournal.com