Insight Hospital Trumbull stops patient admissions due to Steward's bankruptcy
Insight Hospital and Medical Center Trumbull in Warren announced Tuesday it will be stopping their patient admissions for non-emergencies due to developments in Steward's bankruptcy.
According to a memo sent to all employees at the hospital, Steward has decided to begin selling its management functions to a third party following a bankruptcy hearing to cover its debt without the consent of Insight.
In the document from the Chapter 11 bankruptcy hearing, these management functions and assets were sold to Golden Sun TSA Services, an affiliate of Tennesee-based Quorum Health.
The memo claims that Steward has imposed millions in overhead costs and has prevented millions in revenues from coming to the hospitals in the area.
According to the memo, all options for resolution up until this point have been exhausted and no agreement has been reached.
"For our local hospitals, these burdens are untenable and contradict the hospitals’ purpose of providing affordable and accessible medical care to the Warren community. New systems will need to be rapidly installed which will require restructuring Trumbull and Hillside hospitals’ operations and services," said an Insight Health Systems Spokesperson.
The hospital had a Transition Services Agreement (TSA) with Steward before this closure to help in the switch in ownership.
Insight stated Insight Hospital and Medical Center Trumbull, Insight Rehabilitation Hospital Hillside, and outpatient centers in Austintown and Cortland, will continue to provide outpatient services including outpatient surgeries, cardiac cath procedures, lab, imaging, rehabilitation, and any other outpatient procedures.
21 News spoke unanimously to several Insight Hospital and Medical Center Trumbull employees who fear for their jobs. An ER nurse told 21 News "everything is up in the air" and most employees feel "left in the dark" following Tuesday's announcement.
“I wouldn’t go to an ER where I wouldn’t get admitted and treated," said an anonymous nurse with Insight Trumbull. "If I’m having a heart attack, I’m not going there if they’re just going to send me to another hospital."
"We're in strong communication with Insight as well as administrators for the hospital," said Warren Mayor Doug Franklin. "We will stand by them through this process. We became aware a few weeks ago of a restructuring effort that might take place depending on the results of a bankruptcy court decision regarding the transition service agreement (TSA). That seemed to force Insight to do some restructuring so we're going to stand by them and support them through the process."
Tuesday's announcement does not come with any official lay-off announcements. Insight Hospital and Medical Center Trumbull employees approximately 700 staff members.
"Insight remains fully dedicated to the community’s well-being despite these difficult circumstances," said an Insight Health Systems Spokesperson.
Below is the internal memo sent to employees of the hospital.
