Lakewood Hospital

Lakewood Hospital will close once Avon Hospital opens in September 2016. A new health center will be built in its place.

LAKEWOOD, Ohio -- Cleveland Clinic plans to close Lakewood Hospital, after Avon Hospital opens, and build a new $34-million family health center, with an emergency department, officials announced Thursday.

Lakewood City Council must approve any changes to the hospital, which has a contract with the city through 2026. Currently, about 100 of its 200 beds are occupied at any time, Mayor Mike Summer has said.

Check out a recap of live coverage from the press conference here.

The announcement ends years of speculation and weeks of recent rumors.

The new facility will include primary care and specialty programs concentrated on diabetes, geriatrics and cardiac care, among others, in addition to radiology and lab services, according to the Clinic. Inpatient rehabilitation will move to Avon Hospital, scheduled to open in September 2016.

"This is good news for our community and a great first step in transforming the healthcare services available in our city," Summers said. "We are delighted to maintain this important hub in our downtown and know it will be an important asset to the city's continued revitalization."

Under the terms proposed in an agreement with the city, the city will continue to own four acres on the hospital site, along with the parking garage and office buildings.

"We spent a great deal of time studying various alternatives and are very pleased with this agreement," said Tom Gable, president of the Lakewood Hospital Association. "The old model is no longer sustainable in this changing healthcare environment. This investment demonstrates a significant commitment by Cleveland Clinic to ensure that our residents will receive the care they deserve."

Cleveland Clinic plans other initiatives, including buying the medical facility at 850 Columbia Road in Westlake and continuing to operate services currently located in the facility and relocating its Family Medicine Residency and Center for Family Medicine program from Fairview Hospital to Lakewood.

The city, which will receive $8.2 million to offset the loss of rent from the hospital, will meet Jan. 28 at the Beck Center to discuss the issue further.