Skip to main content

McLaren St. Luke's Closing Down in 2023 Due to 'Historical Financial Losses'

Analysis  |  By Amanda Schiavo  
   March 09, 2023

The hospital will transfer ownership of facilities, land, and physical assets to Mercy Health.

McLaren St. Luke’s, a Maumee, Ohio-based healthcare provider, will be closing the hospital this spring following years of declining revenues and an unstable reimbursement environment.

"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," Jennifer Montgomery, RN, MSA, FACHE, president and CEO of McLaren St. Luke’s, said in a statement announcing the closure. "Our passion for patient care and commitment to clinical excellence have never wavered. But sadly, we are not on a financially sustainable path."

McLaren St. Luke’s plans to discontinue operations and transition ownership of facilities, land, and physical assets to Mercy Health by mid-May. Patients who are currently being treated by McLaren St. Luke’s will continue to receive care as the hospital reduces admissions and slows its clinical operations over the coming weeks.

Mercy Health plans to meet with hospital employees over the next several weeks, and a significant portion of McLaren St. Luke’s staff is expected to receive employment offers from Mercy.

"Though this is not the future any of us envisioned for McLaren St. Luke’s, the reality is that times have changed," McLaren St. Luke’s Board Chair Tim Goligoski said in the announcement. "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. 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."

Amanda Schiavo is the Finance Editor for HealthLeaders.

Tagged Under:

Get the latest on healthcare leadership in your inbox.