Local Leaders Form Group to Buy Trumbull Regional’s Assets

WARREN, Ohio – A group of local community leaders announced Tuesday that it is working on an effort to buy and upgrade Trumbull Regional Medical Center.

The group plans to submit a formal offer to purchase the hospital’s assets from Steward Health Care, which filed for bankruptcy protection May 6.

“Our primary objective is to save the hospital and all it means for health care in the community,” said John A. Guarnieri of Howland, a retired businessman and president of Warren City Hospital, the organization established to organize the purchase. “We are concerned that if we do not buy the hospital, it may close for good. That would leave the community’s health care needs grossly underserved.”

Guarnieri said the group is “very optimistic that, with the right management, the right contracts and sufficient funding, Trumbull can recover from its recent challenges and reestablish itself as a quality health care provider, as it had been known for many decades. With cooperation from key sources, we have made tremendous strides in making sure all of the needs of this complex undertaking are met. We remain focused on achieving our goals.”

Other Warren City Hospital officers include Dr. Lindsey Brodell Dolohanty, a dermatologist and owner of Brodell Medical in Warren, vice president; John T. Woods, owner of Insurance Navigators Inc., secretary; and Donald W. Emerson, executive director of the Trumbull Metropolitan Housing Authority, treasurer. All are members of the organization’s board of directors, along with Michael P. Slyk, a pharmacist in Howland and part owner of several nursing and rehabilitation centers.

The group expects to submit its formal offer and a description of its plans to the bankruptcy court, Woods said. 

Elements of the group’s plans include:

• A management company with expertise in reviving struggling community hospitals. This organization would operate the hospital under contract with the Warren group. A tentative agreement is in place.

• Insurance and supply contracts. The Warren group would hire a separate company to establish contracts with medical insurance providers and key medical suppliers. Negotiations are in progress.

• Designation as a nonprofit. This would make the group eligible for foundation grants. An application to the Internal Revenue Service has been filed.

• Formal incorporation of Warren City Hospital. This has been completed. Warren City Hospital is the hospital’s original name; the Trumbull name could not be used because it is owned by Steward Health.

• At least $15 million in capital for the purchase and initial months of operation. Discussions with lenders, the hospital building’s owner and investors are in progress. Additional community support is needed to solidify investments by out-of-town investors involved in the plan.

“All of these important steps have required tremendous amounts of time and some financial contributions, and we have been fortunate to secure all of the support we’ve needed so far,” Woods said.

“But the outside investors working with us want to see more community support before they commit. We have secured some commitments for local funding and had hoped to secure more before going public with our plans. But we are about $5 million short,” he said. “A rejuvenated Trumbull is a goal shared by many in our community, so we are optimistic about closing this gap.”

Those interested in investing with Warren City Hospital can contact the group through its website, by calling 330 646 9593 or by emailing [email protected].

Published by The Business Journal, Youngstown, Ohio.