Warren (Ohio) City Hospital, the name of a collaborative group of business and community leaders, has shared plans to acquire Dallas-based Steward Health Care's Warren, Ohio-based Trumbull Regional Medical Center.
"Our primary objective is to save the hospital and all it means for healthcare in the community," John Guarnieri, president of Warren City Hospital, said in a release shared with Becker's. "We are concerned that if we do not buy the hospital, it may close for good. That would leave the community’s healthcare needs grossly underserved."
Steward sought Chapter 11 protection May 6 and has been working to offload its hospitals and physician group, Stewardship Health. The for-profit health system recently received approval to close two of its Massachusetts hospitals, Boston-based Carney Hospital and Ayer-based Nashoba Valley Medical Center, by Aug. 31.
Steward's landlord Medical Properties Trust has been "very supportive" in Warren City Hospital's efforts to take on Trumbull, along with multiple Trumbull physicians and Steward leaders, John Wood, secretary of Warren City Hospital, said in the release.
The organization plans to submit a formal offer and description plan to the U.S. bankruptcy court by late August.
Here are five elements featured in the plan:
1. Trumbull would be operated by a management company with expertise in reviving struggling hospitals. The company would run under contract with Warren City Hospital and already has a tentative agreement in the works.
2. A separate company would be hired by Warren City Hospital to "establish contracts with medical insurance providers and key medical suppliers." Negotiations with companies are currently in progress.
3. An application to the Internal Revenue Service has been filed to designate the hospital as a nonprofit facility.
4. The plan also includes a formal incorporation of Warren City Hospital, which has already been completed. The hospital's original name is Warren City Hospital. The Trumbull name is owned by Steward and could not be used.
5. A minimum of $15 million will be dedicated to the hospital's purchase and operations for the first few months. "Discussions with lenders, the hospital buildings’ owner and investors are in progress. Additional community support is needed to solidify investments by out-of-town investors involved in the plan," the release said.
Steward did not have a comment for Becker's at this time.