Satellite Offices Included in Steward Closures; Mercy Health ‘Ready to Help’
WARREN, Ohio – Documents filed in bankruptcy court in Houston reveal that Steward Health Care System intends to not only close Trumbull Regional Medical Center and Hillside Rehabilitation Hospital, but also satellite offices affiliated with both hospitals.
Steward announced Wednesday that it intends to close both Trumbull Regional in Warren and Hillside in Howland in about 30 days.
Bankruptcy documents filed in the court of Judge Christopher Lopez also indicate the intent for closure of Trumbull Regional affiliates Austintown Imaging, the Center for Radiology, Center for Surgery and the Sleep Lab. Additional filings indicate Hillside rehab centers in Austintown, Cortland and Warren also intend to close.
The court documents state those wishing to object or claiming they have property at the hospital have seven days to file any objections with the bankruptcy court. They also indicate the hospital will dispose of medical and hazardous waste according to rigorous safety procedures.
“In light of Steward Health Care System’s difficult decision to close Trumbull Regional Medical Center and Hillside Rehabilitation Hospital, Mercy Health is prepared and stands ready to help offer a smooth transition for patients during this time of change,” a spokeswoman for Mercy Health said.
Additionally, she indicated Mercy Health is always looking for top talent for key roles within its ministry, including positions in nursing, nursing support, imaging, surgical tech, surgical assistants, sterile processing techs, lab professionals, respiratory therapists and medical assistants. Job listings can be found HERE.
Open house events will be scheduled at St. Joseph Warren Hospital, including one from 9 a.m. to 5 p.m. today and another from 10 a.m. to 2 p.m. Friday, which will give interested candidates a forum to network with Mercy Health recruiters and managers.
Mercy Health Reaches Out
“Mercy Health is committed to serving our patients and extending the compassionate ministry of Jesus by improving the health and well-being of communities in the Mahoning Valley,” the spokesman said. “As such, we will continue providing high-quality compassionate care, now and in the future, regardless of changes in the local health care landscape.
Should the closures occur, Mercy Health will have large voids to fill. Trumbull Regional has 346 beds and about 700 employees. Hillside has 69 beds and more than 300 employees.
“I have complete confidence in Mercy Health delivering quality care so that we can continue attracting people and companies to grow our economy,” said Guy Coviello, president and CEO of the Youngstown/Warren Regional Chamber in reaction to the announcement. “The priority now is helping the city of Warren and Mayor (Doug) Franklin administration with the potential loss of income tax and both the city and Howland with the reuse of the properties.”
Officials Respond
Gov. Mike DeWine, Ohio Department of Health Director Bruce Vanderhoff and state Rep. Nick Santucci, R-64th, weighed in Wednesday on the potential closure of the hospitals.
Santucci said he has spoken with Ohio Attorney General David Yost’s office to explore options to support hospital workers and look for an alternative system to serve in the area.
“We are deeply saddened by this news,” DeWine and Vanderhoff said in a joint statement. “We take seriously the potential loss of any health care provider, and we understand the deep connections that can be formed between a hospital and the community it services.”
Additionally, they stated the Steward Health corporate leadership must be held accountable while working with local doctors, patients and families to find the best care alternatives. The state officials also promised to monitor the situation and provide support.
In the statement indicating the intent to close the hospitals and satellite offices, a spokesperson for Steward said they have been actively working, along with lenders and other key stakeholders, to sell or transition the two hospitals to new operators. But despite the efforts no “actionable offers” have been received for either hospital.
“Due to our significant cash constraints we are now in the regrettable but unavoidable situation where the process of closing the facilities must begin,” the statement reads. “We remain hopeful we can find an alternative solution that would keep the hospitals open and preserve the jobs of our dedicated team members. We want to help save these hospitals and will continue to work with qualified bidders during this process.”
A news release from the Ohio Nurses Association, which represents the registered nurses at Hillside, stated Steward blindsided staff with the abrupt announcement of the hospital’s closure, effective Sept. 20. The Steward announcement suggested the closures will begin around Sept. 19. A WARN notice has not been issued with the Ohio Department of Job and Family Services.
Going Forward
Steward said it expects to begin closures in an orderly process and will work closely with patients and their families to find the best possible care alternative.
Additionally, Steward said it will work with community members on where they can go for care in the future and will provide assistance to employees and health care professionals.
“This is a challenging and unfortunate situation, but we will continue to keep patient safety and care at the forefront of everything we do,” the Steward spokesperson said.
The ONA AFT said it strongly condemned the decision and called on elected officials to take immediate action to keep the hospital open.
“The closure of Hillside is a tragic result of greed-driven hospital executives, backed by private equity, who prioritize their yachts and private jets over patient care,” said Rick Lucas, ONA president and executive director. “This decision leaves our community without crucial rehabilitation services and forces our dedicated team of nurses and health professionals into unemployment due to Steward’s unchecked greed.”
Since Steward filed for bankruptcy May 6, all of its 31 hospitals in eight states have had concerns about potential closures, especially after it was announced that two hospitals in Massachusetts would close. A hearing on the potential sale of the local hospitals had been scheduled for Aug. 13 but was postponed.
Effort to Save Trumbull Regional
The Warren City Hospital group was formed in an attempt to raise money and save Trumbull Regional and reportedly was in the process of raising at least $15 million. The group, led by retired businessman John A. Guarnieri of Howland, publicly announced its intentions Aug. 6. At that time, the group was about $5 million short.
“We’re very disappointed in Steward’s decision but still optimistic about our efforts to save and upgrade the hospital,” said John T. Woods, Warren City Hospital secretary and president of the Insurance Navigators health insurance agency in Warren.
“Trumbull Regional has a strong staff of doctors and employees,” he said. “We are eager to work with them and the operating specialists who are looking to manage the hospital. It is still our intent to get the job done.”
Sharon Regional Medical Center
A spokesman for the bankrupt company told The Business Journal that no decisions have been made regarding the future of Sharon Regional Medical Center in Sharon, Pa. “Negotiations are continuing,” she said.
The Sharon hospital is one of four Steward purchased from Community Health Systems in 2017. The following year, Steward closed Northside Regional Medical Center in Youngstown.
The closing notices for Trumbull Regional and Hillside follow a series of delayed bid deadlines for the hospitals. By giving notice of the intent to close, Steward is acknowledging that it does not have sufficient funds to operate the hospitals past Sept. 20. At the same time, Steward’s statement emphasizes that negotiations are continuing with potential bidders.
In Massachusetts, similar notice was given for two Steward hospitals in the Boston area, which are in the process of closing. In that state, however, the attorney general stepped in and offered $30 million in interim state funding to keep Steward’s six other hospitals operating there.
Last week the Massachusetts governor invoked eminent domain to take over St. Elizabeth’s Medical Center in Brighton and turn the operation over to the Boston Medical Center.
The state of Ohio has not taken any official action regarding the bankruptcy case. There are no court filings from Ohio on the court docket. Nor has there been public discussion of possible financial assistance to keep the hospitals operating for the short term while “actionable bids” are sought.
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