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Cleveland Clinic adds another Florida health system to its footprint

October 3, 2018

Cleveland Clinic adds another Florida health system to its footprint

CLEVELAND, Ohio – The Florida-based Indian River Medical Center will join the Cleveland Clinic health system, according to a news release. 

The deal comes after an 18-month search process for the county-owned hospital, and is the Clinic’s second addition this week of a healthcare player in the Sunshine State. On Tuesday, the Clinic announced Martin Health System would become a full member of its system. 

Under the new deal, which is expected to be finalized this week, the Clinic will invest $250 million in IRMC in the next decade.

“We appreciate the commitment and dedication the Indian River board members and trustees have demonstrated as they sought the right partner,” Dr. Tom Mihaljevic, CEO and president, said in a prepared statement. “As healthcare continues to evolve, this is a great opportunity for our organizations to come together and work in tandem to enhance access and advance healthcare today and in the future in Vero Beach.”

IRMC Board of Directors and the Indian River County Hospital District Trustees voted unanimously today to approve a series of agreements that will result in #IRMC joining the Cleveland Clinic health system. @ClevelandClinic @CleveClinicFL pic.twitter.com/hSDKrja2IM— IRMC (@IRMCVero) October 3, 2018

Once the deal is finalized, the Clinic will have governing authority over IRMC and its affiliates, according to the release. IRMC will lease the hospital facilities and land from the Indian River County Hospital District, an Independent Special Taxing District, for up to 75 years. 

Under the agreement, the Clinic will keep maternity care, in-patient well baby care/pediatrics and gynecology services, behavioral health/mental health services, all cardiovascular services, all cancer care services and gastroenterology services at IRMC for at least a decade, the release said. 

“Indian River Medical Center is an anchor institution and a true community asset,” Dr. Wael Barsoum, CEO and president of Cleveland Clinic Florida, said in a prepared 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.”

Three years after the closing of the deal, which is expected to happen by the end of the year, the Clinic will phase out IRMC’s indigent care model and assume responsibility for indigent care. The Clinic’s charity care policy will go into effect on the first day, the release said. 

“This is an extraordinary day in the history of our community,” IRMC Board Chair Dr. Wayne Hockmeyer said in a prepared statement. “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 Clinic has been growing its presence in Florida and operates 10 locations in in the state. In 2016, the system had a $1.2 billion economic impact in Florida. 

Founded in 1932, IRMC is a 332-bed nonprofit hospital on Florida’s Treasure Coast, along the Atlantic Ocean. 

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