The intensive 18-month effort to secure Indian River Medical Center’s future neared its conclusion today as the IRMC Board of Directors and the Indian River County Hospital District Trustees voted to approve a series of agreements that will result in IRMC joining the Cleveland Clinic health system. We expect to formally sign the agreements later this week.
Under the terms of the transaction, Cleveland Clinic is committing to invest at least $250 million in IRMC over the next 10 years.
“This is an extraordinary day in the history of our community,” said IRMC Board Chair Dr. Wayne Hockmeyer. “People across the country and across the world know that Cleveland Clinic stands for world class healthcare, and they will be partnering with the exceptional staff, physicians and nurses at IRMC to provide that level of care right here in Vero Beach for years to come.”
After a public meeting on Sept. 25 where advisors and legal teams shared the details of the agreements, board members and trustees took the last week to pore over those details and deliberate about their decision. In separate public meetings today, the IRMC Directors and IRCHD Trustees came to the same conclusion: the future of health care in Indian River County is with Cleveland Clinic.
“This has been a very long road, with countless hours of effort by not only our trustees and the IRMC board members but from people across our community,” said Hospital District Chair Marybeth Cunningham. “We can all be very proud of how transparently the process was conducted, and this terrific end result of that hard work.”
“We appreciate the commitment and dedication the Indian River board members and trustees have demonstrated as they sought the right partner,” said Tom Mihaljevic, M.D., CEO and President, Cleveland Clinic. “As healthcare continues to evolve this is a great opportunity for our organizations to come together and work in tandem to enhance access and advance healthcare today and in the future in Vero Beach.”
When finalized, IRMC and its affiliates will become part of the Cleveland Clinic health system, with the Cleveland Clinic having ultimate governing authority at IRMC. IRMC will continue to lease the hospital facilities and the land on which they stand under an amended and restated agreement with the Hospital District for a term of up to 75 years.
“Indian River Medical Center is an anchor institution and a true community asset,” said Wael Barsoum, M.D., CEO and President, Cleveland Clinic Florida. “We look forward to working closely with the leaders, physicians and staff to build on their great foundation of care and to strengthen support for indigent care.”
In addition to the $250 million investment commitment, the agreements outline that Cleveland Clinic will maintain maternity care (labor, delivery and obstetrics), in-patient well baby care/pediatrics and gynecology services, behavioral health/mental health services, inpatient and outpatient cardiovascular services, inpatient and outpatient cancer care services and gastroenterology services at IRMC for at least 10 years.
Also as part of the agreements, District support for indigent care at IRMC in general will phase out over three years after the transaction’s closing, while Cleveland Clinic’s charity care policy will go into effect on the first day. After the three years, Cleveland Clinic/ IRMC will assume responsibility for indigent care in general at the hospital. The District does, however, plan to continue support for the Partners program, which provides prenatal and post-partum care.
The transaction will close once filings and approvals required by governmental agencies are complete, and the expectation is that the agreements will be completed before the end of the year.
For more information about the process, including all of the agreement documents, please visit www.irmctomorrow.com.
About Cleveland Clinic
Cleveland Clinic is a nonprofit multispecialty academic medical center that integrates clinical and hospital care with research and education. Located in Cleveland, Ohio, it was founded in 1921 by four renowned physicians with a vision of providing outstanding patient care based upon the principles of cooperation, compassion and innovation. Cleveland Clinic has pioneered many medical breakthroughs, including coronary artery bypass surgery and the first face transplant in the United States. U.S. News & World Report consistently names Cleveland Clinic as one of the nation’s best hospitals in its annual “America’s Best Hospitals” survey. Among Cleveland Clinic’s 51,000 employees are more than 3,500 full-time salaried physicians and researchers and 14,000 nurses, representing 140 medical specialties and subspecialties. Cleveland Clinic’s health system includes a 165-acre main campus near downtown Cleveland, 10 regional hospitals, more than 150 northern Ohio outpatient locations – including 18 full-service family health centers and three health and wellness centers – and locations in Weston, Fla.; Las Vegas, Nev.; Toronto, Canada; Abu Dhabi, UAE; and London, England. In 2016, there were 7.1 million outpatient visits, 161,674 hospital admissions and 207,610 surgical cases throughout Cleveland Clinic’s health system. Patients came for treatment from every state and 185 countries. Visit us at clevelandclinic.org. Follow us at twitter.com/ClevelandClinic. News and resources available at newsroom.clevelandclinic.org.
About Indian River Medical Center
With more than 85 years of serving the Treasure Coast community, Indian River Medical Center is a 332-bed, not for profit hospital offering comprehensive medical services to the community. IRMC’s award winning Welsh Heart Center and the Scully-Welsh Cancer Center are affiliated with Duke Health, offering full service programs and a multidisciplinary approach. The IRMC team of healthcare professionals represents specialties including nationally-recognized orthopedic services, minimally invasive vascular surgery, neurosurgery, robotic surgery, a state of the art wound healing center, bariatric surgery and the only maternity wing in the community that welcomes more than 1200 babies each year. Founded by Garnett Radin, R.N., in 1932, IRMC features all private rooms and is the largest private-sector employer in Indian River County.
About Indian River County Hospital District
The Indian River County Hospital District (IRCHD) is an Independent Special Taxing Districted established by a Special Act of the Florida Legislature. The primary purpose of the District under the Special Act is to establish health facilities in Indian River County, to provide health and medical services for the benefit of the community, and to undertake such other actions which the District decides are related to and supportive of those facilities and services. The District has taxing authority up to 5 mills and annually assesses a property tax to financially support these facilities and services.
The IRCHD helps insure that essential health care services are provided to the underserved by reimbursing seven not-for-profit organizations for the care they deliver to individual patients.
The IRCHD also leases land and buildings to healthcare service providers including the Indian River Medical Center under a long-term agreement.