City of Lakewood Consultant Huron Releases Initial Draft of Phase One Analysis of Proposed Plan for Lakewood Hospital

Lakewood City Council President Mary Louise Madigan released the first draft report today from Huron Consulting Group, an independent national consulting firm hired by the City of Lakewood to assist the city in its due diligence following a January 2015 proposal by the Cleveland Clinic and Lakewood Hospital Association over the future of Lakewood Hospital.

The initial phase of Huron’s work was to advise the city on current healthcare trends, including population health and conversions of acute care hospitals into ambulatory centers. As part of that analysis, Huron presented its initial draft of the Phase One report to City Council on July 13.

Highlights of the initial draft of Huron’s Phase One report, which will be updated to reflect additional information and findings, include the following:

• Population in the Lakewood Hospital service area has decreased over the past five years and is expected to continue to decrease over the next five years.
• Lakewood Hospital is operating in competitive marketplace with Fairview Hospital, MetroHealth, Lutheran Hospital and St. John Medical Center all operating within a 10-mile radius of Lakewood Hospital. The opening of the Cleveland Clinic’s Avon Hospital in 2016 will serve to increase this competitive environment.
• In the Lakewood Hospital service area, there are 4.3 hospital beds per 1,000 people, compared to an Ohio average of 2.9 beds per 1,000 people and a national average of 2.6 beds per 1,000 people.
• All major services offered at Lakewood Hospital can be found at one or more of the nearby competing hospitals. The family health center proposed by LHA and the Cleveland Clinic will eliminate some services currently offered at Lakewood Hospital, but will also include some services that are not currently available.
• Healthcare trends are moving away from the traditional inpatient hospital model to a population health model that focuses on preventative care and outpatient services offered through various outlets, including family health centers.

The complete initial draft of Huron’s Phase One Report to the City of Lakewood is available online at onelakewood.com/wellness.

As Huron continues its analysis, it will (1) continue to add to its analysis of healthcare trends, (2) review the analysis and recommendations made by Subsidium Healthcare in its report to LHA, (3) review the obligations contained in the 1996 definitive agreement between the Cleveland Clinic and LHA, (4) analyze Lakewood Hospital’s financial position, and (5) make recommendations regarding the type and scope of services required to best serve the residents of Lakewood.

Since receiving the letter of intent from the LHA and Cleveland Clinic with respect to a proposed plan for Lakewood Hospital and future healthcare delivery in Lakewood, City Council and administration of the city have been working diligently, in good faith and with all deliberate speed, to understand and assess the proposed plan. These efforts have included over 30 meetings by City Council with representatives of LHA, the Cleveland Clinic, LHA’s consultant Subsidium Healthcare, the Lakewood Hospital Foundation, human service organizations and other community organizations and members of the public, as well as analysis by outside counsel of the existing definitive agreement and lease relating to Lakewood Hospital.

While it continues to conduct due diligence, City Council has not introduced, considered or adopted any legislation that would carry the terms of this proposal or any proposal regarding the future of Lakewood Hospital into effect.

Hired separately by the city to perform several analyses relating the proposed plan, Huron is a market leader in providing integrated performance improvements solutions and financial advisory services to hospitals and other healthcare organizations. Additional information on the members of the Huron team performing the Lakewood Hospital analysis is available in the Phase One report. Additional information on Huron is available at huronconsultinggroup.com.

Contact: Mary Louise Madigan, 216/529-6055; mary.madigan@lakewoodoh.net