Barring Objections, Insight to Own Trumbull Hospitals this Week
YOUNGSTOWN, Ohio – Midnight Wednesday is the deadline to file objections to Insight Health System of Flint, Mich., becoming the new owner of Trumbull Regional Medical Center in Warren and Hillside Rehabilitation Hospital in Howland.
Steward Health Care System filed a motion late Friday informing U.S. Bankruptcy Court that Medical Properties Trust has selected separate foundations established by Insight to buy the hospitals. Insight is based in Flint, Mich. It operates hospitals, surgery centers and clinics in Michigan, Iowa, New Jersey and Illinois.
MPT, owner of Steward’s real estate, took control of the Trumbull County hospitals Sept. 11 following a negotiated settlement with Steward and its lenders. At that time, MPT designated Insight Health to operate the hospitals.
If no objections are filed to Insight buying the hospitals, U.S. Judge Christopher Lopez is likely to approve the transactions without a hearing.
As such, Insight will purchase all assets of Trumbull Regional and Hillside, free and clear of all encumbrances, without paying one dime to bankrupt Steward. Instead, during Insight’s interim management period, the company relieved Steward’s financial burden by paying certain costs and expenses of keeping the hospitals open and operating.
“The aggregate consideration for the purchased assets is buyer’s assumption of the assumed liabilities,” court papers state.
The not-for-profits created by Insight to buy the hospitals are Insight Foundation of Trumbull and Insight Foundation of Hillside.
Said Dr. Jawad Shah, a neurosurgeon and founder of Insight Health System, upon taking operating control of the hospitals Sept. 12, “We recognize the undue stress and unease activities over the last several months have caused members of the Warren community and surrounding areas who have been in limbo wondering how they will get medical care or whether they will still have a job if these facilities close. … “We will assess all aspects of those facilities’ operations in the coming weeks to identify sensible pathways to stabilize operations to ensure these organizations can meet the needs of the communities they serve for generations to come.”
Pictured at top: Trumbull Regional Medical Center in Warren.
Copyright 2024 The Business Journal, Youngstown, Ohio.
