Another Medical Group Seeks to Acquire Trumbull Hospitals
WARREN, Ohio – Another medical group, Yates Medical Group LLC, is seeking to acquire both Trumbull Regional Medical Center in Warren and Hillside Rehabilitation Hospital in Howland.
The group expressed “interest in purchasing some of Steward Health’s hospitals” in May, a news release states.
Yates Medical Group claims it is the only organization with the capital and resources ready to purchase the land and operate the hospitals, and its offer to purchase both hospitals would have benefited Steward creditors; Medical Properties Trust, which owns the properties; and the local community, the release states.
During Chapter 11 bankruptcy hearings in Houston last week, Insight Health System was given the opportunity to become the interim manager of both Trumbull Regional and Hillside, with the expectation that Insight would work toward purchasing the hospitals.
Yates informed Medical Properties Trust last week it had the working capital to run the hospital, the money to purchase the land and a team ready to take over as the interim operators, the release states. Yates approached foundations for money, but intended to pay back the bridge funds with interest.
The group says it has increased its offer to MPT, and it would relocate its headquarters to the area and reopen “a much-needed hospital that was shut down a few years ago, that will serve Trumbull, Mahoning, Portage, Stark and Columbiana counties.”
The release states that Yates negotiated with Steward Health to purchase both Trumbull County hospitals and Sharon Regional Medical Center in Sharon, Pa., despite delays by Steward and unrealistic deadlines that Yates was able to meet. However, the group says it refused offers from private equity firms that did not align with their values, and took the longer route of debt financing.
Yates Medical Group is a “faith-based organization with a mission to transform health care in America.”
Both Insight and Yates state that they will operate the local hospitals as nonprofits, and both reportedly have experience in turning around struggling hospitals.
Pictured at top: Trumbull Regional Medical Center in Warren.
Published by The Business Journal, Youngstown, Ohio.
