Health system on life support?


Staff photos / R. Michael Semple
A man leaves Trumbull Regional Medical Center on Thursday. Trumbull County Commissioner Denny Malloy and Warren Mayor Doug Franklin are concerned that financial issues facing the hospital’s owner, Texas-based Steward Health, will affect the health care services available at the medical facility. TRMC is at the center of two lawsuits filed by local companies that allege they’re owed thousands of dollars in unpaid bills.

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WARREN — Trumbull County Commissioner Denny Malloy and Warren Mayor Doug Franklin, in an open letter to the public, express their concern about the fiscal woes of Steward Health Care System and how it could impact the delivery of health care at Trumbull Regional Medical Center.

The letter states talks that began several months ago with stakeholders “to understand the quality of the current and future health care” offered by many providers in Trumbull County “focused primarily” on Trumbull Regional downtown and other assets owned by Texas-based Steward Health.

Future talks, according to the letter, will focus on multiple priorities: making sure there is quality health care in the city; the careers and jobs of Trumbull Regional and other Steward facility employees; protecting the tax base of the city, county and Warren City Schools; and preventing properties that provide health care from being abandoned.

“We are navigating many options that could lead to good outcomes for everyone,” the letter states. “While this process will not be easy, we will work tirelessly to foster meaningful dialogue with many business, community, medical and government leaders, all committed to preserving the quality health care that we are accustomed to throughout the Mahoning Valley.”

Steward Health also operates Hillside Rehabilitation Hospital in Howland and Sharon Regional Medical Center in Sharon, Pa.

FINANCES

In January, there were reports the Texas-based health care system, which operates more than 30 hospitals in eight states — including Ohio in Trumbull County and Pennsylvania in Mercer County — owed $50 million back rent at the end of 2023 to its landlord, Alabama-based Medical Trust Properties Inc., one of the largest owners of hospital real estate in the world.

Then in February, the system announced an action it said would allow the organization to “emerge as a sustainable business” that included a $150 million cash infusion to provide additional liquidity as the company moved toward selling its asset physician group, Stewardship Health, according to a press release.

Other points in the plan included selling non-essential assets and downsizing its non-patient footprint, as well as divesting noncore assets, the release states.

The company also brought on global consulting firm Alix Partners to advise on restructuring Steward in the northeast region, the release states. Earlier this week, there were reports that Steward is looking to sell its nine hospitals in Massachusetts.

In Trumbull County, Trumbull Regional is at the center of two lawsuits filed by local companies that allege they’re owed thousands of dollars in unpaid bills by Steward Health.

Medical supply company Penn Care Inc. in Niles claims it is owed $67,940 by Steward Health for goods provided to Trumbull Regional in late 2021 through 2022, according to the lawsuit in Trumbull County Common Pleas Court.

The lawsuit filed Jan. 3 is assigned to Judge Ronald Rice. A hearing in the case is scheduled for March 26, court records show.

An earlier lawsuit filed by electrical contractor Becdel Controls Inc. also of Niles, alleges it is owed $61,674 for electrical work the company performed at the East Market Street hospital over several weeks in 2023.

The case filed Dec. 28 is assigned to Judge Cynthia Rice. There is a hearing set for May 14, according to court records.

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