Steward Health Care, parent company of Trumbull Regional Medical Center and Hillside Rehabilitation Hospital, has started the closure process for the two Warren hospitals.
Though the company said in a statement that it's still making attempts to keep the hospitals open, the final day for hospital operations is scheduled for Sept. 19.
"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 said.
The company said it remained "hopeful" that it could find another path to keep the hospitals open.
"We want to help save these hospitals and will continue to work with qualified bidders during this process," the statement said, adding that a deal would need to happen very soon to avoid the hospital closures.
Tom Connelly, who represents AFSCME Local 2026 — the nurse’s union at Trumbull Regional Medical Center — said he’s still hoping a buyer will emerge.
"The hospitals are receiving CPR, but we're not ready to quit yet," Connelly said. "We're trying to work with whoever we can work with to see if we can't resolve the situation."
The hospitals are still taking patient appointments and the emergency room remains open. Patients will be contacted individually regarding future care plans.
Six satellite locations are also set to close, according to court records:
- Austintown Imaging
- Austintown Rehabilitation Services
- Elm Road Rehabilitation Services
- Trumbull Regional Medical Center for Radiology
- Trumbull Regional Medical Center for Surgery
- Trumbull Regional Medical Center Sleep Lab
The closure announcement comes after months of speculation and concern. The hospitals were up for auction in June but a purchase was not completed. Steward said in its statement that it has not received any actionable offers.
In bankruptcy court documents, Steward said it will "close the Closing Facility in a manner that ensures patient health and safety and ensures the preservation of records."
In a joint statement, Ohio Gov. Mike DeWine and Dr. Bruce Vanderhoff, director of Ohio Dept. of Health, called for accountability from Steward.
"The corporate leadership of Steward Health Care must be held accountable to ensure they are actively working to support their local doctors while they work with patients and their families to find the best possible care alternative," Vanderhoff said in the statement. "While they have committed to do so, we will actively work with the local health care community to ensure they properly follow through on that pledge."
The statement pointed out that people could go to one of two hospitals in Youngstown — Mercy Health St. Joseph Hospital and Mercy Health St. Elizabeth Hospital — both located within 15 miles of Warren.
Staff were blindsided by the closure notice Wednesday, according to the Ohio Nurses Association.
“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, in a statement. “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.”
ONA has called on elected officials to take immediate steps to keep the hospital open.
“After meeting with the Ohio Governor’s and Attorney General’s office, it’s clear no one is safeguarding our community or patients, which must change,” Lucas said.
Residents and Warren area leaders had expressed concerns and a pledge to save the hospitals earlier this year. The hospitals have been a top employer in Warren, meaning hundreds of workers will lose their jobs upon closure.
The region has already lost several community hospitals over two decades due to declining population and national trends in health care. People are traveling to larger hospitals for treatment, while many hospitals have become outpatient facilities.
The two hospitals also paid millions in taxes to the city and county each year, according to Honeya Price, a Warren city councilmember. That tax revenue funded many services, she said.
Steward has made recent headlines for its financial woes. The venture capital-backed health system once owned more than 30 hospitals, making it the largest for-profit system in the country.
The Texas-based company bought several underperforming community hospitals, then sold the real estate of their hospitals to another company and made the hospitals pay rent on their own facilities while cutting unprofitable services, like maternity wards. In 10 years, the private equity company netted a $800 million profit, leading the investors to pay themselves $100 million in 2020.
Steward began selling off some of its hospitals and stopped paying bills last year, leading medical supply companies to begin repossessing equipment. In May, the system filed for chapter 11 bankruptcy.