Steward to Shutter Ohio Hospitals, Lay Off 944 Workers

The ripple effects of Steward's financial collapse continue to be felt across the country.

More hospital closures are on the way for Steward Health Care as the troubled company searches for financial footing.

Steward is shutting down Trumbull Regional Medical Center and Hillside Rehabilitation Hospital both in Warren, Ohio, as well as Northside Regional Medical Center in Youngstown, Ohio, resulting in 944 workers being laid off, according to Worker Adjustment and Retraining Notification letters.

The layoffs will affect 765 employees at Trumbull Regional Medical Center, 170 at Hillside Rehabilitation Hospital, and nine at Northside Regional Medical Center.

Steward said it plans to close the facilities on September 20 after it failed to find a buyer. The health system put all of 31 of its U.S. hospitals up for sale when it filed for Chapter 11 bankruptcy in May.

"However, despite every effort made to attract qualified buyers, there have been no actionable offers received for Trumbull Regional or Hillside," Steward said in a statement.

"Therefore, due to our significant cash constraints we are now in the regrettable but unavoidable situation where the process of closing the facilities must begin. We remain hopeful we can find an alternative solution that would keep the hospitals open and preserve the jobs of our dedicated team members."

Rick Lucas, president and executive director of the Ohio Nurses Association, criticized Steward's decision to shutter Hillside.

"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," Lucas said 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."

Another Steward hospital in Pennsylvania, Sharon Regional Medical Center, is also in jeopardy of closing.

Steward asked the state for $1.5 million to keep Sharon's doors open, but Judge Christopher Lopez ordered the hospital operator to hold off on closing the location until the end of August. Meadville Medical Center has been selected as a potential buyer for Sharon.

In Massachusetts, Steward announced that it has entered into definitive agreements to sell four hospitals after Governor Maura Healey recently revealed the state had reached deals in principle.

Lifespan will purchase Morton Hospital and St. Anne's Hospital for $175 million, while Lawrence General Hospital will take control of Holy Family Hospital's Methuen and Haverhill campuses for $28 million.

"This agreement accomplishes our goal of maintaining and protecting access to care and jobs in Southeastern Massachusetts and the Merrimack Valley, while removing Steward Health Care from Massachusetts once and for all," Healey said in a statement.