Rockledge Hospital, a 298-bed facility, is one of three hospitals Orlando Health acquired in October from Dallas-based Steward Health Care. The $439 million acquisition, which also included Melbourne Regional Medical Center and Sebastian River Medical Center, was approved by a U.S. bankruptcy judge as part of Steward’s Chapter 11 bankruptcy proceedings.
“Years of neglect” left Rockledge Hospital in such poor condition that it did not meet the organization’s standards for patient care, Orlando Health said in a Feb. 20 news release shared with Becker’s.
To avoid the hospitals’ immediate closure during Steward’s bankruptcy, Orlando Health said it agreed to accept Rockledge Hospital when it purchased Melbourne and Sebastian River hospitals.
“Following in-depth inspections that could only occur after acquisition, it was determined that the cost to repair and renovate Rockledge Hospital far exceeds the cost of a new, state-of-the-art hospital,” according to the health system. “Accordingly, a decision has been made to close the facility. This decision is necessary to ensure the safety of patients and team members.”
An inspection revealed that Rockledge Hospital’s electrical, HVAC and plumbing systems are failing, according to Orlando Health, which is planning to build a new hospital in the region.
“Construction of a new hospital within the region may take several years, which is longer than our experts feel Rockledge Hospital can realistically remain open,” the health system said.
Once Rockledge Hospital closes, Orlando Health plans to demolish the facility. The hospital land will be sold for redevelopment, and the system will evaluate its other properties surrounding the hospital for future use.
Orlando Health has established a transition team to assist patients, physicians and staff affected by the closure. Plans are underway for new care sites of care in the community, including a new hospital in Brevard County. No timeline was provided on when a new hospital would be opened.
“All Rockledge Hospital team members in good standing, and open to taking jobs at other Orlando Health locations, are guaranteed positions within the organization,” according to the health system, which has more than 3,000 positions available across its facilities. “Some positions may require commuting or relocation.”
The health system said there are no plans to close the Melbourne and Sebastian River hospitals.