Cleveland Clinic acquires Indian River Medical Center, Martin Health in deals requiring $750 million in financial commitments
Indian River Medical Center, Martin Health are now officially part of Cleveland Clinic Health system after announcing merger plans in October.
Cleveland Clinic has closed two merger deals that make the system the new parent of Indian River Medical Center and Martin Health System, a three-hospital system. Both are now officially part of the Cleveland Clinic health system, effective Jan. 1 following recent regulatory reviews and approvals.
Moving forward, IRMC and Martin Health will continue all current operations, services and programs and patients will continue to see their same physicians and providers. Both Indian River and Martin Health announced definitive agreements with Cleveland Clinic in early October.
THE IMPACT
Martin Health includes three hospitals with 521 beds, a 150-member employed physician group, and outpatient services that reach across southeast Florida.
IRMC and its affiliates will also fall under Cleveland Clinic's ultimate governing authority following the close of the deals. The nonprofit system serves the Treasure Coast community and touts 332 beds and offers comprehensive medical services.
Both acquisitions will broaden Cleveland Clinic's Florida footprint.
THE TREND
While merger and acquisition activity has not quite hit the overall record-breaking level reached in 2017, there was certainly been no shortage of headline-making deals in 2018. CVS Health and Aetna finalized their merger at the end of 2018 as did Cigna and Express Scripts.
Baylor, Scott and White Health and Memorial Hermann announced plans to merge and Dignity Health and Catholic Healthcare Initiatives cleared a major hurdle with the approval by the California Department of Justice for the two systems to join. Ascension Health and Presence Health finalized their merger in early March.
MORE ON THE STORY
Under the terms of both agreements, Cleveland Clinic has made significant financial commitments to both systems. For Martin Health, Cleveland Clinic has committed $500 million over five years into the system for "strategic and capital needs."
Cleveland Clinic will also support Martin Health associates, whose employment and benefits will be maintained for at least one year from the finalization of the agreement. It will also continue to support the nonprofit organizations Martin Health partners with to enhance the health and well-being of the community.
The terms of the IRMC transaction stipulate a commitment of at least $250 million from Cleveland Clinic over the next 10 years. The system must also maintain maternity care (labor, delivery and obstetrics), in-patient well baby care/pediatrics and gynecology services, behavioral health/mental health services, inpatient and outpatient cardiovascular services, inpatient and outpatient cancer care services and gastroenterology services at IRMC for at least 10 years.
ON THE RECORD
"As part of Cleveland Clinic, we look forward to enhancing our services now and in the future," said Robert L. Lord Jr., Martin Health President and CEO. "I believe joining Cleveland Clinic will be extremely beneficial for Martin Health and Treasure Coast residents. Our organizations share similar cultures and a mission to provide exceptional care to the communities we serve."
Twitter: @BethJSanborn
Email the writer: beth.sanborn@himssmedia.com
