Valley legislators ask DOJ to investigate closure of Insight hospitals in Trumbull County

US House of Representatives David Joyce and Michael Rulli, along with US Senator Jon Husted, sent a letter urging the US Attorney General, Pamela Bondi, to ask the US Department of Justice to open an investigation into the circumstances that led to the closures of Trumbull Regional Medical Center and Hillside Rehabilitation Hospital, both in Trumbull County.
The letter, which was posted to Representative Joyce's webpage, reads:
We are deeply troubled by reports indicating that the closures are due to the bankruptcy of the hospitals' parent company, Steward Health Care, and a subsequent disagreement over a Transition Services Agreement (TSA) with Insight Health Systems, the hospitals' new owner.
The letter continued that when Insight took over the closed facilities in October of 2024, it would require approximately six months to secure its Medicaid and Medicare licenses from the state. The letter continued, "However, Steward reportedly broke this sale agreement by imposing millions of dollars in administrative charges on the hospitals and preventing millions of dollars in income from reaching the facilities, according to a memo that was distributed to staff in March 2025 notifying them of the hospitals' closures. It was also claimed that there may have been instances of Medicare and Medicaid fraud or abuse in connection with the operations of these hospitals, all leading to the closure of the Trumbull facilities."
Items asked to be looked at include:
- The integrity and accuracy of Medicare and Medicaid billing practices during that period
- Whether federal funds intended to support patient care were misused, diverted, or fraudulently reported
- The transparency and legality of communications provided to local officials, hospital staff, and the general public
- The financial and operational decisions made by the parent company or management entities during the hospital ownership transition process and months leading up to the closure
The letter stated that the closure of "rural hospitals is not merely a local issue — it is a national crisis that disproportionately affects low-income and medically vulnerable populations. These institutions are not just centers of care, they are pillars of their communities, providing essential services, stable employment, and public health infrastructure."
The legislators asked Bondi if fraud or abuse played any role that led to the Insight closure, "it is essential that those responsible be held accountable."