Lakewood Hospital to close, new facility built

[Betsy Voinovich]

Here is the word from the Press Conference from Jim O'Bryan:

Lakewood Hospital will be torn down and a 120 million dollar Emergency Care Facility will be built in its place. 1100 workers are affected. Those that are being laid off will have priority in being hired in other hospitals. This will be accomplished by 2016.

The rest of the property will be used by the City of Lakewood for Economic Development.

The 32 million dollars that the Lakewood Hospital Board has will be re-purposed for ensuring wellness in the City of Lakewood. Whatever that means.

All of the related documents will be posted shortly.

Jim O'Bryan via Betsy Voinovich

[Peter Grossetti]

How many jobs leave when hospital closes?

How many job gained when new facilty opens?

Net gain/loss in jobs?

Net gain/loss in tax revenue?

[Jim O'Bryan]

From City Hall...

http://lakewoodobserver.com/read/2015/01/15/lakewood-hospital-association-lakewood-hospital-foundation-andcleveland-clinic-announce-partnership



$120 Million Investment To Be Made In Lakewood; New Health & Wellness Campus to Include Family Health Center with Emergency Department

Thursday, Jan. 15, 2015, Lakewood: In light of the tremendous changes in healthcare today and in keeping with the City of Lakewood’s goal to become the healthiest city in America, the Lakewood Hospital Association (LHA)and the Lakewood Hospital Foundation (LHF) signed a Letter of Intent last night with Cleveland Clinic. This plan includes a $120 million investment in Lakewood to transition from the current model to a future one which will modernize healthcare and deliver a more sustainable way to meet the long-term needs of the Lakewood community.

Under the proposed plan, which will require approval by Lakewood City Council, a health and wellness campus will be created. As part of this, Cleveland Clinic will construct, own and operate an estimated $34 million, 62,000-square-foot family health center, which will include a full-service emergency department, to replace Lakewood Hospital in the future. The new facility will include primary care and specialty programs concentrated on diabetes, geriatrics and cardiac care, among others, in addition to radiology and lab services. Additional services will be determined based on the needs of the community and a public discussion that will be scheduled in the coming weeks.

more at the link.


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[Jim O'Bryan]

Subject: Lakewood Hospital Trustees unanimously voted to affirm LOI

Dear members of Lakewood City Council,

By unanimous vote, both Lakewood Hospital Trustees and the Lakewood Hospital Foundation Trustees affirmed the attached LOI this evening. The is a big step with a big investment in healthcare delivery. I docket letter says it best.

I ask that his letter and the attached LOI be placed on the January 20th 2015 docket for your consideration. There is not any imminent action required by City Council. There will be important decisions in the months ahead .

A press conference will be held in city hall Auditorium at 10AM tomorrow, Thursday January 15th. It would be great if you can attend. Dr Cosgrove , Trustee Chairman Tom Gable and I will announce this to the public at this conference.

The Hospital employees will be notified at 8AM tomorrow. It is very important that this remains confidential until 10AM. These employees deserve to hear this first hand from their employer.

After 10AM, this whole subject should and will be a robust public conversation. Note a public meeting is scheduled for January 28th, 7PM at the Beck Center. The Hospital trustees and the Clinic will present their journey to this decision and why this decision makes sense.

Michael P. Summers
Mayor, City of Lakewood
mike.summers@lakewoodoh.net
216-529-6600

[Bill Call]

I am not impressed.

So 1,100 workers are to be laid off, an existing hospital to be demolished, doctors to be moved from Lakewood to Avon all to make room for a

Minute Clinic and recreation center.

The Mayors dream is now a reality. A profitable hospital that provides hundreds of millions in economic benefit to the City of Lakewood is to be replaced with a money eating recreation center.

Not only that but, the City

surrenders $1 million in income from rent,
donates $20 million in real estate to the Clinic and
loses all control over the new facility and the
Lakewood Hospital Foundation must empty its $30 million treasury and turn it over to the Clinic.

Will the doctors moved from Lakewood to Avon be transferred back to the new Minute Clinic or must we still go to Lorain County to see a doctor?

[Jim O'Bryan]

Michael p. summers

mayor



12650 Detroit Avenue ● 44107 ● 216/529-6600 ● FAX 216/529-5652
http://www.onelakewood.com



January 14, 2015



Lakewood City Council
12650 Detroit Avenue
Lakewood, Ohio 44107

Dear Members of Council:

Tonight the 23-member Lakewood Hospital Association governing board, of which I am a member, voted to sign a letter of intent with the Cleveland Clinic Foundation and the Lakewood Hospital Foundation that, if carried forward, will chart a course for healthcare in Lakewood in the near term and over the next several decades.

The non-binding letter of intent, which follows this communication, contemplates that the parties will join the city in entering into a new definitive agreement this year that will redefine healthcare in the city. Included in the letter of intent are plans for a new $34 million, 62,000-square-foot family health center to be built and operated by the Clinic on Detroit Avenue and a new $32 million community health and wellness foundation that, once designed and implemented, will serve Lakewood’s citizens’ comprehensive healthcare objectives from the cradle to the grave.

A more thorough summary of the deal outlined in the letter of intent follows:

Parties to Letter of Intent
• Cleveland Clinic Foundation (CCF), Lakewood Hospital Association (LHA), Lakewood Hospital Foundation (LHF)
• City of Lakewood (City) to be added before Definitive Agreement is finalized
Objective
• To transform services in Lakewood from inpatient to comprehensive outpatient, wellness and outreach services
Family Health Center and Services
• CCF to invest about $34 million to build (approximately) 62,000 square foot Family Health Center (FHC)
• To be built on about 2.5 acres of the current hospital site
• Includes 24/7 Emergency Department
• Parking details to come; will include parking in the Belle Avenue deck
Family Medicine Residency
• The Family Medicine Residency program, including 16 medical doctors, will relocate from Fairview Hospital campus to Lakewood FHC
Emergency Department
• The current ED will continue to operate during the wind-down, if reasonably possible, until the FHC’s ED opens
New Tax-Exempt Entity
• >$32 million will fund a tax-exempt, community-based foundation (excludes assets of Lakewood Hospital Foundation)
• $24.4 million from CCF (half at effective date, half when FHC opens and plan for hospital decommission is complete) PLUS additional payments of $500,000 per year for 16 years (total of $8 million)
Role of CCF in New Entity
• CCF to have two board seats (out of up to 21)
• CCF to have naming opportunity for program or facility funded by the community-based foundation
• CCF to have right of first refusal to be the provider of programs/services over $500,000/year
Wind-down/ Dissolution
• City maintains ownership of land under hospital (except what is sold for FHC) and other property, including parking garage, Medical Office Building, Community Health Center, homes and paved lots
• President of the LHA will direct the dissolution plan, which will be an exhibit to Definitive Agreement
• $33-$49 million will be invested to transition into new model
• LHA to pay City $8.2 million, received from CCF for LHA-owned facility at 850 Columbia Road in Westlake
Support
• City will promptly grant needed regulatory approvals within its authority
• CCF, in turn, will work with Avon to help negotiate an agreement with Lakewood on payroll tax-sharing
Other Terms
• No other health system provider will operate on the same property
• CCF will use its brand and market position to help Lakewood attract a wellness center partner (if desired)
• The City will include at least one employee benefits health plan choice that includes CCF as a preferred provider

You can see there has been much accomplished and there is much to be done. I am extremely proud of the work undertaken over the past several years by the hospital trustees, who considered all possible options with regard to the future of Lakewood Hospital and healthcare in our city. You should also know Council President Madigan and Councilman Bullock represented your Council very thoughtfully and diligently on the governing board throughout this process.

Many exciting opportunities are found in this plan, which would modernize a citywide system of care over which our residents have always taken ownership and responsibility—from 1907 when the hospital was founded to 1931 when it became a city asset, from 1986 when the hospital was first leased to the non-profit Lakewood Hospital Association to 1996 when the city and LHA partnered with the world-class Cleveland Clinic Foundation. This plan continues our residents’ historical concern and compassion for theirs and their neighbors’ public health and well-being.

Significant challenges are also found in the plan, including the decommissioning of Lakewood Hospital, a decrease in tax revenue at some point in the future and our stewardship of the city assets at and around the hospital site. All these merit our serious dedication to the tasks ahead: contemplating our role in the process, openly and earnestly hearing our citizens’ concerns, and negotiating and implementing a fair agreement with our partners, which would culminate in legislation for your consideration.

One of the first steps on that path is to hear from the hospital trustees, a great many of whom are Lakewood residents, and the Cleveland Clinic team. To that end, the trustees have scheduled an initial public forum, to which you and all Lakewood residents are invited, on Wednesday, January 28, 2015, at 7 p.m. in the Mackey Main Stage auditorium at the Beck Center for the Arts, 17801 Detroit Avenue in Lakewood. Those attending will hear about the trustees’ process in arriving at this plan and more about the definitive agreement contemplated under the letter of intent. They will also be encouraged to ask the questions we hope for and expect in the midst of such an important decision.

Prior to that public forum, I ask merely that this communication be referred to the Committee of the Whole for further discussion and deliberation in conjunction with these public meetings to be hosted by the hospital trustees.

Sincerely,

Michael P. Summers

LOI From Clinic to Lakewood.
http://media.lakewoodobserver.com/media/docs_1421339287.pdf


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[Bill Call]

The City will receive a one time payment to make up for lost rent as long as the City agrees to forgo its right to damages.

[Jim O'Bryan]

The Plain Dealer is reporting that the facility will cost about $35 million. About 1/10 of what they are spending in Avon.

The City will receive a one time payment to make up for lost rent as long as the City agrees to forgo its right to damages.

Bill

Stop spreading spin, we have the documents, I was there.

The line you wanted to hear, The day Avon opens, Lakewood closes. From Dr. Cosgrove.

All documents posted in post above, check them out.

.

[Jim O'Bryan]

10am meeting.


Cleveland Clinic motorcade.


Mayor Summers starts the conference, Tom Gable, Director of Hospital Assoc on left. Dr. Toby Cosgrove, President CEO Cleveland Clinic center.




Dr. Toby Cosgrove talks about the future.



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[Peter Grossetti]

Ooooooooo!!! Architectural renderings! (with cardboard people and perfectly puffy trees)!

[Peter Grossetti]

I hope the new rec center has outdoor basketball hoops!

[Bill Call]

That rendering is truly pitiful. It looks like an ad hoc concept cobbled together at the last minute.

If we look back over the last 10 years we see that every time the Clinic brought a new idea for Lakewood Hospital it always included a promise for increase investment later if the City caved in now. The investments never came.

How do we know they aren't lying again?

http://www.aesopfables.com/cgi/aesop1.c ... andtheFrog

Was it last week or the week before that the Mayor was talking about a 100 bed hospital? Are we now talking 0 beds?

I don't mind compromise but for a minute clinic?

The City should tell the Clinic to go to hell.

[Bret Callentine]

I'm confused... if the end goal is only to build a new building 1/5th the size of the existing hospital, why do they have to tear down the hospital first?

Hey mayor, why not claim imminent domain and give them the Madison Theater property. they can tear down that building (if it doesn't fall down first) and build the clinic there, then just move whatever personnel they're going to keep from the hospital down the street. why fire people then maybe re-hire them? why destroy a beautiful Lakewood landmark when there are so many vacant lots and half destroyed buildings already waiting for development?

why is it that the city always seems like the orphan standing in line hoping for more gruel?

[m buckley]

Wasn't it just a few weeks ago that Ms. Madigan went on record with her " Yeah, I've heard the rumors too" comment? To get from a rumor to this, wow that's warp speed. I'm tired of Summers, Siley and Madigan and this netherworld of rumor and misinformation that they so comfortably navigate . The lack of transparency that defines this clique is appalling.

[Bill Call]

Wasn't it just a few weeks ago that Ms. Madigan went on record with her " Yeah, I've heard the rumors too" comment? To get from a rumor to this, wow that's warp speed. I'm tired of Summers, Siley and Madigan and this netherworld of rumor and misinformation that they so comfortably navigate . The lack of transparency that defines this clique is appalling.

Two weeks ago the Mayor was telling us that we might have to reduce the number of beds to 100. I have to assume that at that time he thought there would still be a hospital. When did the Clinic tell him there would NOT be a hospital?

If the Clinic is going to build a new minute clinic on Detroit that means they will be abandoning there space on W117th and Detroit and also abandoning their facility on Madison. If that is the case we not only lose a hospital but we actually end up with fewer doctors in Lakewood than we have now.

As far as I can tell the Clinics deal is this:

1. Lakewood releases the Clinic from any liability for the violation of its lease.
2. Lakewood agrees to grant the Clinic a veto over any other medical facilities in Lakewood
3. The Lakewood Hospital Foundation is functionally and financially crippled
4. The Clinic will build a minute clinic on Detroit but abandon its other facilities in Lakewood
5. The Clinic can abandon its new minute Clinic without notice for any reason.

The City should turn down this proposal.

If hospital beds are a thing of the past then why is the Clinic building a new hospital in Avon?

If Avon needs the hospital then why do they have to close Lakewood Hospital to make Avon economically viable?

I've know for 10 years that the Clinic intended to destroy the Hospital. When did the Clinic first know?