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Lakewood City Council has released the first part of a four-part consultant's report on Lakewood Hospital.

(File photo)

LAKEWOOD, Ohio - The population surrounding Lakewood Hospital is declining; the area appears to have too many hospital beds, and patients increasingly are being treated on an outpatient basis, according to a report released Tuesday by the city.

The city hired Huron Consulting Group for $75,000 to $90,000 more than one month ago to advise City Council as it considers whether to approve a proposal to close Lakewood Hospital and open a Cleveland Clinic health center and emergency department in its place.

Lakewood City Council met for nearly four hours Monday in a closed-door session to discuss Huron's study, the first of four phases focusing on health care trends locally and nationally. Additional phases will be released in coming weeks. Each phase will address a different topic, including a look at the hospital's current financial position and an assessment of the proposed agreement with the Cleveland Clinic.

Huron's conclusions so far largely echo the findings of Subsidium Healthcare, a consultant hired by the Lakewood Hospital Association.

Lakewood Hospital Association, Cleveland Clinic, Lakewood Hospital Foundation and Mayor Michael Summers announced a plan Jan. 15 to close the hospital in late 2016. The city owns the hospital building and leases it to the Clinic, which runs the hospital.

Hospital association trustees and Clinic officials say the recommendation is based on a trend of declining revenues and inpatient stays. Advocates of saving the hospital criticize the Cleveland Clinic's management.

Among Huron Consulting's findings:

The population in the Lakewood Hospital service area has declined by 0.48 percent annually over the past five years and is expected to decrease 0.32 percent annually over the next five years. In comparison, the nation's population is increasing by about 0.68 percent annually.

Lakewood Hospital is operating in a competitive environment with four other hospitals - Fairview Hospital, MetroHealth Medical Center, Lutheran Hospital and St. John Medical Center - within 10 miles of Lakewood. The opening of Cleveland Clinic's Avon hospital next year will increase competition.

There are 4.3 staffed hospital beds per 1,000 residents in Lakewood Hospital's service area, defined as encompassing four zip codes, as compared to a national average of 2.6 beds per 1,000.

All major services offered at Lakewood Hospital can be found at one or more nearby competing hospitals.

According to the American Hospital Association, inpatient admissions at community hospitals declined by 0.9 percent annually between 2008 and 2012, while outpatient visits increased by 2 percent annually over the same period.

The consultant's report appears at the bottom of this story. Readers on mobile devices can see it here.

Marguerite Harkness, chairwoman of Save Lakewood Hospital, said Tuesday afternoon she had not had yet seen the report. However, she questioned why Lakewood City Council is holding executive or closed-door sessions to discuss the consultant's work.

"Many of us are questioning the propriety of the calling of executive sessions, practically every meeting," Harkness said.

Law Director Kevin Butler said last night's meeting was closed because it entailed discussions involving the potential purchase or sale of real estate and pending litigation, reasons allowed under Ohio sunshine laws. Holding such discussions in public could reveal the city's bargaining position in real estate negotiations. The meeting also included the city's attorneys.

Tom Monahan, of Save Lakewood Hospital, said the group plans to circulate petitions to have an issue placed on the November ballot to prevent Lakewood Hospital from closing.

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