Firelands Health now owns Bellevue Hospital

SANDUSKY — After going through a lengthy court process, one local health care organization now falls under the umbrella of another. The region's U.S. Bankruptcy Court recently approved a Chapter 11 reorganization plan in which Firelands Health becomes the sole owner of the Bellevue Hospital. Because of this, Firelands Health will pledge financial resources and capital investments to maintain services and sustain and/or expand health care access for Bellevue's hospital and surrounding communities. In other words, "This commitment ensures the local community's continued access to high-quality care," according to a joint statement from both organizations. Leaders from each entity spoke about this reorganization process: • Sara Brokaw, the Bellevue Hospital's president and CEO: "The Bellevue Hospital is excited about being part of Firelands Health. This partnership makes us stronger and better equipped to serve our community. Firelands presented itself as the best fit as (it shares) our mission to ensure access to excellent care and can help us offer our patients a broader range of services. We deeply appreciate the continued support of our patients, staff and community as we navigate this path to a brighter future." • Jeremy Normington-Slay, Firelands Health's CEO: "We are grateful and excited to be actively expanding, creating a network of health care providers across the region and continuing to deliver access to high-quality, cost-effective care. There is a great deal of work to do, which will take time, but we've already been working together on long-term plans and are excited. This transaction makes us stronger together." Making sense of the dollars and cents In short, the Bellevue Hospital faced numerous financial challenges that it simply could not overcome without help. Firelands Health, which has a longstanding partnership with Bellevue's hospital in providing care for regional patients, agreed to assume this debt with a combination of funds it saved over time along with "strategic financing," Normington-Slay said. "Our hope is to grow services, and we have committed to maintaining the acute-care hospital," Normington-Slay said. An acute care hospital provides short-term treatment for severe or urgent illnesses, injuries or surgical needs. This new planned reorganization also guarantees that patients who receive health care services at Bellevue's only hospital can continue going there without experiencing any interruptions, Firelands administrators said. Had Firelands not stepped in, it's likely Bellevue's only hospital could have shut down for good, leaving people in this area with way fewer options for care. In the proceedings, Fisher-Titus did express some interest in taking over the Bellevue Hospital. Normington-Slay went into some more notable details of Bellevue Hospital's bankruptcy process. • "We agreed to refinance the entire bank debt of just over $17 million." • "We will also cover, substantially, all of the outstanding liabilities and accounts payable, likely no more than $6.5 million." • "And then we will invest capital to run the hospital, which we estimate to be about $2 million to $3 million per year for the first five years." While the numbers seem staggering and insurmountable for a hospital to overcome, Normington-Slay believes it can and will. "We fully expect the Bellevue Hospital to complete its financial turnaround over the next 12 to 18 months or so, and the operations at the Bellevue Hospital will be able to service, pay for, the debt payments and pay for the majority of their capital needs," Normington-Slay said. Beyond then, with a better financial forecast projected, Normington-Slay knows Firelands — which is considered a nonprofit — can recoup its money. Firelands Health intends to pay off these debts through savings accrued via investments. It'll also look for grant opportunities to offset any balances. Why it's happening In late 2024, the Bellevue Hospital released a statement hinting at financial troubles, and — in a joint statement with Firelands Health released in February — noted its severe monetary problems. This led to the Chapter 11 bankruptcy process. Through this process came a restructuring and acquisition with Firelands Health, enabling the Bellevue Hospital "to address financial obligations while continuing to serve the health care needs of the community," the statement read. The filing comes as the Bellevue Hospital is encountering "many of the current pressures common to rural and independent U.S. hospitals, such as rising operational costs, access to capital, regulatory complexity and funding constraints," the statement read. Executives underscored how the Bellevue Hospital "will remain fully operational, and its commitment to providing compassionate care remains unchanged throughout the process." It's not publicly known if and/or how employees could be affected. "Our plan to align ourselves with Firelands Health will help ensure long-term sustainability," Brokaw said. "This restructuring effort is the result of an in-depth process in which we thoroughly evaluated possible solutions. This potential partnership would position us to emerge stronger and better equipped to serve our community." Normington-Slay noted Firelands acquiring the Bellevue Hospital serves as a "natural fit." "Our cultures are very much aligned, and both organizations are dedicated to providing high-quality, accessible care to the people of this region," Normington-Slay said. "We look forward to working with the strong leadership team at The Bellevue Hospital and providers and staff to ensure a continuum of care to our patients." For more than 100 years, "The Bellevue Hospital has provided quality medical services to patients in the region," the statement read. "Firelands Health system is the area's largest and most comprehensive resource for quality medical care and consists of Firelands Regional Medical Center, Firelands Physician Group and The Foundation for Firelands."