Save Lakewood Hospital Lawsuit

Attorney Christopher DeVito, center in the dark suit, holds a news conference outside Lakewood Hospital to announce a taxpayer lawsuit aimed at keeping Lakewood Hospital open. To the left are Margueriete Harkness and Ed Graham, two of the plaintiffs.

(Bruce Geiselman, Northeast Ohio Media Group)

LAKEWOOD, Ohio - Attorney Christopher DeVito filed a lawsuit Thursday against a slew of defendants, seeking to keep Lakewood Hospital open until at least 2026 and $400 million in damages.

The money would be awarded to the city, DeVito said.

Five individuals, including former City Councilman Ed Graham and Save Lakewood Hospital Association Chairwoman Marguerite Harkness, are named as plaintiffs. Also named as a plaintiff is the city of Lakewood.

The defendants include Cleveland Clinic, the city of Lakewood, the Lakewood Hospital Association, Subsidium Healthcare LLC and Ohio Attorney General Mike DeWine.

DeVito, who lives in Rocky River, said in a news release the lawsuit seeks "no less than $400 million for past breaches of contract, breach of fiduciary duty, unjust enrichment, promissory estoppel, fraud, and conspiracy" by the Cleveland Clinic Foundation and other defendants.

The city, the Lakewood Hospital Association and the Cleveland Clinic in January announced plans to close the hospital at the end of 2016, when a new Avon hospital opens. The Clinic would open a family medical center and emergency department in place of the hospital, which it says is losing money because of declining inpatient volumes and revenue.

The Cleveland Clinic's lease for the approximately 100-year-old hospital runs through 2026, and City Council would need to approve plans to close the hospital early.

City council has been mulling the issue ever since, in a series of heated meetings.

Details of the lawsuit

DeVito's lawsuit, which was assigned to Cuyahoga County Common Pleas Judge John P. O'Donnell, seeks to require the Cleveland Clinic to abide by its lease. The lawsuit also questions administrative fees the Clinic has charged Lakewood Hospital, which in recent years amounted to more than $24 million annually. DeVito wants the Cleveland Clinic to explain the fees, which he considers excessive.

DeVito claims the Cleveland Clinic slashed "vital Lakewood Hospital medical services" and referred patients to other Cleveland Clinic hospitals. The lawsuit refers to "the slow demise at the hands of CCF." DeVito claims "gross mismanagement of Lakewood Hospital."

DeVito lists 21 medical services he said were terminated or transferred.

"By terminating these services, CCF has been able to pursue its strategy of crippling Lakewood Hospital to the point that CCF would have leverage when bargaining with the city to close Lakewood Hospital, prematurely exit its DA [definitive agreement] and lease obligations, and build a new hospital in Avon, Ohio, of which CCF will have complete ownership and control," according to the lawsuit.

The lawsuit also wants a court to compel city officials to ensure the continued operation of Lakewood Hospital for the benefit of residents and 1,100 employees.

"There is no reason to close and demolish Lakewood Hospital," according to the lawsuit.

At the end of its lease, the lawsuit says the Cleveland Clinic should return the hospital and all its assets back to the city in good condition.

The lawsuit appears at the bottom of this story. Readers on mobile devices can read it here.

Lakewood Hospital is the largest employer in the city and its closing would "cause irreparable harm and a devastating negative economic impact of over $3 billion to the local community," DeVito said.

Responses to the lawsuit

Lakewood Law Director Kevin Butler said he had just begun reviewing the allegations in the lawsuit.

"Our comments will be reserved for court," Butler said.

Mayor Michael Summers could not immediately be reached for comment. Subsidium Healthcare also could not be reached.

Cleveland Clinic issued a statement saying it has honored and followed its contract to operate Lakewood Hospital for the city, the statement reads.

"We hope this litigation does not compromise the thoughtful process that is underway, so Lakewood residents can receive high-quality health care that meets their needs well into the future," according to the Cleveland Clinic statement.

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