99 Jobs Cut As Tucson Hospital Prepares To Close This Month

The closure adds to strain in Arizona's mixed job market as the state's June unemployment rate ticked up to 4.9%.

By Vianella Burns, Patch Staff

Jul 21, 2026 11:41 am MST

TUCSON, AZ — A Tucson hospital is closing its doors by the end of the month, cutting 99 jobs in the latest sign of strain on the region's health care sector.

Select Medical Corporation, which operates Select Specialty Hospital – Tucson East at 5301 East Grant Road, filed a Worker Adjustment and Retraining Notification with the state at the begining of the month.

The notice said the hospital has stopped accepting new patients and will close on or about July 31.

Company officials said patients seeking care should be referred to the nearest affiliated hospital, though the notice did not specify which facility that would be.

The closure comes as Arizona's job market shows mixed signals heading into the second half of the year. The state's seasonally adjusted unemployment rate rose to 4.9% in June, up from 4.8% in May, even as the national rate fell to 4.2% from 4.3% over the same period.

Arizona's seasonally adjusted labor force shrank by about 20,200 people from May to June, a drop of 0.5%, and has fallen by roughly 73,300 people, or 1.9%, over the past year, according to the Arizona Office of Economic Opportunity. Not-seasonally adjusted employment fell by 46,700 jobs month over month, though it's still up 27,900 jobs, or 0.9%, from a year earlier.

"Although June typically brings substantial seasonal job losses, this year's employment change was stronger than historical norms, suggesting employers maintained hiring demand across several industries heading into the second half of the year," said Doug Walls with the Arizona Office of Economic Opportunity.

"June’s report highlights conflicting signals between employer and household labor market indicators. Positive payroll job growth remains an encouraging sign, but rising unemployment and declining labor force participation suggest broader labor market conditions softened as Arizona entered the second half of 2026," Walls added.

Federal law requires employers to give 60 days' notice before mass layoffs or plant closings under the Worker Adjustment and Retraining Notification Act, giving affected workers time to plan before losing their jobs.