WARREN, Ohio – The newly established local group that is mounting an effort to buy Trumbull Regional Medical Center plans to make stabilizing operations its first priority, said John T. Woods, secretary of Warren City Hospital.
“It’s been absolute havoc with Steward Health Care. The staff, I can’t say enough about the great job they have done for the last three or four years – especially the last 12 months,” he said.
The Warren City Hospital group has received a lot of support from the doctors, nurses, kitchen staff, maintenance and others.
“This is a grassroots campaign, with the help of some very smart people to whom we were introduced,” Woods said.
Trumbull Regional is among three local hospitals slated to be sold after Steward Health Care filed for Chapter 11 bankruptcy May 6.
Should Warren City Hospital succeed in buying the hospital, it would need to secure $15 million in capital to sustain operations for about three months, Woods said. That’s in addition to whatever the purchase price might be.
Because prior accounts receivable would not come with the hospital purchase, no income would be received for 60 to 65 days, he explained. Warren City Hospital would have to find enough money to pay employees, work with suppliers and cover other expenses until it generates income.
“We’ve been pledged some money, but we know we need more,” Woods said. “I want the community to know there’s local folks working on it. We need your support. Please keep going to the hospital, and if you feel like donating, we would love for you to help us.”
Beside Woods, the board of Warren City Hospital consists of John A. Guarnieri of Howland, president; Dr. Lindsey Brodell Dolohanty, vice president; and Donald W. Emerson, treasurer.
From the financial statements Steward has provided, Wood said they know much work must be done.
According to the report of the bankruptcy court-appointed patient care ombudsman, who toured Trumbull Regional on June 24, multiple elevators were out of order that day and needed repaired or replaced. Additionally, the ombudsman listed nonworking essential kitchen equipment: a dishwasher, three ovens, a garbage disposal, a refrigerator door, a condensation drain and a cooler. The report further suggested that four boilers need to be retubed, and a 140-ton chiller and a 7.5-ton air condenser need to be replaced, as well as doors and thermostat regulators.
“Steward Health Care is not a good steward of what they were supposed to be stewards of at any of its 31 locations. They are just horrible,” Woods said.
During a hearing Tuesday before U.S. Judge Christopher Lopez, an attorney for Steward briefly referenced the possibility of selling the Trumbull hospital, Hillside Rehabilitation Hospital in Howland and Sharon Regional Medical Center in Sharon, Pa.
“We certainly have a lot of wood to chop on the hospitals outside of Massachusetts,” the attorney said, without mentioning the local hospitals by name. “But we do think we are making a lot of progress on the Massachusetts hospitals” and the Steward physician group, he added.
The three local hospitals are clustered with Steward’s Massachusetts hospitals and designated as the first round to be sold – or closed.
The hearing in U.S. Bankruptcy Court in Houston dealt with the commonwealth of Massachusetts agreeing to provide $30 million to keep six of Steward’s hospitals operating until they are sold. Two other Boston area hospitals will be closed.
Woods said based on remarks Lopez made at a previous hearing, he believes the judge wants to do what is right for these communities and does not want to close hospitals. But it’s important that a sustainable alternative to closure be placed in front of him.
A hearing in U.S. Bankruptcy Court regarding Trumbull Regional is set for Aug. 13, and the Warren City Hospital group has standing to speak before the court about the consideration of its bid, according to Woods. He confirmed the group is one of those referred to by Steward’s attorney at a previous hearing as a “late bid” for the three local hospitals.
“They know we’re interested,” Woods said. “They know who we are. They know we have people working on it to help us.”
He said he hopes after Aug. 13 there will be more answers to the fluid situation.
Woods indicated that Medical Property Trust, the Alabama-based company that owns all of Steward’s real estate, seems to be helpful toward Warren City Hospital’s efforts.
“We always knew it was a long shot, but it was one we thought we had to do to protect the health of the community,” Woods said.
He said he doesn’t believe St. Joseph Warren Hospital could handle the influx of patients that would come with the closure of Trumbull Regional, nor could hospitals in Youngstown and Boardman.
As part of its formal offer, Warren City Hospital intends to submit to the bankruptcy court a description of its operating plan. According to a news release from Warren City Hospital, the plan includes:
- 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.
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.”
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