Martin Health System wants to become full member of Cleveland Clinic system

STUART — Martin Health System wants to join the Cleveland Clinic health system as a full member, it said Thursday.

"Martin Health believes that having a close relationship with Cleveland Clinic ... will strengthen our health system and raise the level of care that we are able to provide for our patients," said Martin Health CEO Rob Lord.

Cleveland Clinic would provide access to resources and expertise Martin Health may not otherwise have available, Lord said. Cleveland Clinic is ranked the No. 2 hospital in the country by U.S. News & World Report.

Martin Health is the second health system on the Treasure Coast looking to join Cleveland Clinic, which operates a hospital in Weston.

Cleveland Clinic already is negotiating a takeover of Indian River Medical Center, which is owned by the Indian River County Hospital District. That deal is expected to close in August.

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Like Indian River Medical Center, Martin Health System is a private, independent, nonprofit hospital. Consultants have told IRMC leaders those hospitals are the most at risk of going out of business because of competition from larger health systems that have the leverage to negotiate better deals on insurance reimbursements, equipment and supplies.

Martin Health reported $103 million in net assets on its 2016 tax return, down $49.3 million from 2015. However, it's still better than the $60.4 million in assets Martin Health reported in 2013.

Lord, though, denied Martin Health is looking to Cleveland Clinic because of financial difficulties. Instead, it's in response to industry-wide pressures.

"Health care today is challenged by increasing competition, regulation, cost of doing business and declining reimbursement," Lord said. "As a result, there is an increasing national and regional trend toward strategic affiliations among hospitals and health care systems.

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The last hospital to join Cleveland Clinic was Akron General Health System in Akron, Ohio, in 2015. Indian River Medical Center leaders visited Akron General in January as part of their research of Cleveland Clinic.

Martin Health went public with its interest in joining Cleveland Clinic about two months after the two health systems announced an affiliation between the Martin Health Frances Langford Heart Center and the Cleveland Clinic Heart & Vascular Institute.

It is unknown how Cleveland Clinic's potential takeover of Martin Health would affect plans to renovate its campus in downtown Stuart, Lord said.

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"I think that will have to be determined once a final agreement is signed," Lord said in an email. "Regardless of Cleveland Clinic’s involvement, the modernization plan for the Martin Medical Center campus was likely going to be at least a decade away. So it is difficult to speculate on what effect an agreement with Cleveland Clinic would have on those plans."

Martin Health and Cleveland Clinic officials are discussing the details of their potential partnership, Lord said. There is also no timetable for reaching a final agreement.

Moreover, Martin Health and Indian River Medical Center aren't the only Florida hospitals eyed by Cleveland Clinic for takeovers. Cleveland Clinic is looking at taking over several other Florida hospitals, an Indian River County Hospital District trustee has said during public meetings.

More: Cleveland Clinic takeover of Indian River Medical Center expected to close by Aug. 31

Cleveland Clinic has confirmed its desire to expand, but hasn't disclosed its takeover targets.

“We believe Martin Health can play an integral role in the expansion of Cleveland Clinic services in southeast Florida, and look forward to exploring the possibilities our health systems may have together,” said Dr. Wael Barsoum, CEO and president of Cleveland Clinic Florida, in Martin Health's news release.

Cleveland Clinic currently is involved in an accountable-care organization with Jupiter Medical Center and Boca Raton Regional Hospital as part of the Medicare Shared Savings Program. Both are independent, nonprofit hospitals.

Jupiter Medical Center spokeswoman Kathleen Ahearn said Thursday the hospital plans to remain independent and has no interest in joining Cleveland Clinic or any other health system.

“We are not in talks with Cleveland Clinic or any other party for any kind of major partnership or merger,” Ahearn said. “We’re not for sale."

"We intend to remain an independent not-for-profit hospital,” Ahearn said. "We’re in a very strong financial position to do so, we have very high-quality scores, we have the support of the community and philanthropists in this community.”

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