Hospital will discontinue operations and transition ownership of facilities, land and physical assets to Mercy Health
MAUMEE, Ohio (March 3, 2023) – Following years of declining revenues and an unstable reimbursement environment, the McLaren St. Luke’s Board of Directors has made the difficult, but unanimous, decision to close the hospital and related outpatient services. The organization has begun notifying employees, patients, regulators, and community partners of plans to discontinue operations by mid-May.
McLaren Health Care and Mercy Health are in the process of finalizing an asset purchase agreement in which Mercy Health will acquire the McLaren St. Luke’s facilities, land, and physical assets, pending final due diligence.
Mercy Health will work with WellCare Physicians Group practices through the transition with the goal of maintaining continuity of patient care.
“Despite the tireless dedication of everyone associated with McLaren St. Luke’s, we have not been able to overcome the historic financial losses experienced by this hospital – losses that began long before COVID-19 that now run into the millions each month,” said Jennifer Montgomery, RN, MSA, FACHE, president and CEO of McLaren St. Luke’s. “Our passion for patient care and commitment to clinical excellence have never wavered. But sadly, we are not on a financially sustainable path.”
Current patients at McLaren St. Luke’s will complete their care, and the hospital will begin to reduce admissions and wind down other clinical operations in the weeks ahead.
As part of the agreement, Mercy Health expects to extend employment opportunities to a significant percentage of McLaren St. Luke’s physicians and employees. Representatives from Mercy Health will begin meeting with hospital employees and physicians early next week.
“Mercy Health is committed to increasing access to high-quality, compassionate care throughout the Toledo region,” said Mercy Health – Toledo President Bob Baxter. “We are honored to work with McLaren St. Luke’s to offer a seamless transition of care for patients, community members and associates in Maumee and the surrounding areas.”
“Though this is not the future any of us envisioned for McLaren St. Luke’s, the reality is that times have changed. With so many hospitals in the area and more and more procedures being done in an outpatient setting, a facility like ours just cannot compete,” said McLaren St. Luke’s Board Chair Tim Goligoski. “It’s a tough pill to swallow for those of us who have been part of St. Luke’s for years or even generations, but we take pride in the impact we’ve had and the countless lives we’ve touched along the way.”
For more information, visit mclaren.org/stlukestransition. For patients seeking additional information on scheduling, bill pay or medical records, please call 419-897-8484.
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