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Cleveland Clinic may grow to 15 hospitals

The boards of Cleveland Clinic and Vero Beach, Fla.-based Indian River Medical Center voted to approve a series of agreements allowing IRMC to integrate into the Cleveland Clinic, the organizations announced Oct. 3.

Here are five things to know:

1. The advisers and legal teams of both organizations shared details of the agreements with board members during a public meeting Sept. 25. Board members and trustees spent the last week analyzing the details and finalized their decision Oct. 3. Officials from both organizations will formally sign the agreements later this week.

2. Under the deal, IRMC and its affiliates will become part of the Cleveland Clinic, which also agreed to commit at least $250 million to IRMC over the next 10 years.

3. Cleveland Clinic will maintain full governance over IRMC and has committed to maintaining maternity care, inpatient well-baby care/pediatrics and gynecology services, behavioral health services, and other inpatient and outpatient services for at least 10 years. However, the hospital district will phase out support for indigent care at IRMC during the three years after the transaction closes.

4. The deal is still pending regulatory approval.

5. Cleveland Clinic recently inked a definitive agreement to purchase Martin Health System, a three-hospital institution in Stuart, Fla. If both deals are successful, Cleveland Clinic will comprise 15 hospitals in addition to its main campus.

More articles on transactions and valuations:
Verity Health seeks to auction hospitals, receives $235M initial bid
Cleveland Clinic to invest $500M in Florida system after takeover
Ascension inks agreement to sell Connecticut hospital

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