The system agreed to invest $250 million and keep certain services active over the coming decade at the hospital in Vero Beach, Florida.
Indian River Medical Center, a 332-bed county-owned hospital based in Vero Beach, Florida, will become part of the Cleveland Clinic health system under the terms of agreements expected to be formally signed this week.
The organizations announced Wednesday that IRMC's board of directors and the trustees of the county's hospital district had voted in favor of agreements that would result in the hospital joining the Ohio-based system, which has been pushing deeper into the Florida market recently.
"Indian River Medical Center is an anchor institution and a true community asset," Wael Barsoum, MD, president and CEO of Cleveland Clinic Florida, said in a statement. "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."
The news comes about seven months after the organizations' announcement last February of a nonbinding letter of intent to partner.
Under the terms of the deal, Cleveland Clinic committed to invest a minimum of $250 million in IRMC over the coming decade, assume $102 million in liabilities, and keep all 1,700 of the hospital's employees at their current compensation, as Colleen Wixon reported for Treasure Coast Newspapers.
The deal includes guarantees that Cleveland Clinic will maintain several key services lines, including maternity care, pediatrics, gynecology, behavioral and mental health, cardiovascular care, cancer care, and gastroenterology, for at least 10 years, according to announcement.
Indian River Medical Center (courtesy photo)
The hospital district will continue to support indigent care at IRMC, but that will be phased out over three years following closing. Cleveland Clinic's policy on charity care will take effect immediately, then it will assume full responsibility for indigent care after the three years have passed.
IRMC Board Chair Dr. Wayne Hockmeyer said the deal is great news for the community.
"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."
The IRMC deal in Vero Beach comes as Cleveland Clinic announced a deal to take over Martin Health, based about an hour's drive south in Stuart, Florida. That deal calls for Cleveland Clinic to invest $500 million for three hospitals with a total of 521 beds, as Treasure Coast Newspapers reported.
Cleveland Clinic Florida's main campus is in Weston, and it has already expanded into Coral Springs and Wellington.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.
Photo credit: (at top): Cleveland Clinic Florida (courtesy photo)
KEY TAKEAWAYS
The investment comes as Cleveland Clinic drops anchors in several southeastern Florida cities.
The agreements stipulate how indigent care and certain service lines may be handled over the coming decade.