Cleveland Clinic is adding Indian River Medical Center into its health system and is committing to invest at least $250 million in the Vero Beach, Fla., organization over the next 10 years.
“People across the country and across the world know that Cleveland Clinic stands for world class health care, 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,” IRMC Board Chair Dr. Wayne Hockmeyer said in a statement.
When finalized, IRMC and its affiliates will become part of the Cleveland Clinic health system, with the Cleveland Clinic having ultimate governing authority at IRMC. IRMC will continue to lease the hospital facilities and the land on which it stands under an amended and restated agreement with the hospital district for a term of up to 75 years.
In addition to the $250 million investment commitment, the agreements outline that Cleveland Clinic will 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.
Also as part of the agreements, district support for indigent care at IRMC in general will phase out over three years after the transaction’s closing, while Cleveland Clinic’s charity care policy will go into effect on the first day. After the three years, Cleveland Clinic/IRMC will assume responsibility for indigent care in general at the hospital. The district does, however, plan to continue support for the Partners program, which provides prenatal and postpartum care.
“We appreciate the commitment and dedication the Indian River board members and trustees have demonstrated as they sought the right partner,” said Dr. Tom Mihaljevic, CEO and president of the Cleveland Clinic in a statement. “As health care continues to evolve, this is a great opportunity for our organizations to come together and work in tandem to enhance access and advance health care today and in the future in Vero Beach.”
The transaction will close once filings and approvals required by governmental agencies are complete, and the expectation is that the agreements will be completed before the end of the year.