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Operators picked for local hospitals

WARREN — Insight Health System, the Flint, Michigan-based hospitals operator that has been temporarily managing Trumbull Regional Medical Center and Hillside Rehabilitation Hospital, is in line to become their new permanent operator.

Attorneys for Steward Health Care filed a motion in the bankrupt health care provider’s Chapter 11 case that states Medical Properties Trust, which holds Steward Health’s leases, selected not-for-profit entities affiliated with Insight Health as the designated operators of the local facilities as well as proposed bills of sale.

Medical Properties Trust, based in Alabama, took control of Trumbull Regional in Warren and Hillside in Howland as well as 13 other facilities elsewhere with interim managers Sept. 11 after a settlement agreement in Steward Health’s case.

Then, Insight Medical was named interim manager for the hospitals.

The groups affiliated with Insight Health are Insight Foundation of Trumbull and Insight Foundation of Hillside, the same not-for-profit organizations that took over temporarily in September.

The deadline to object to Insight Health’s designation as operator is 11:59 p.m. Wednesday.

Founded in 2008, Insight, a physician-led organization, operates hospitals and other health care facilities in Michigan, Iowa, New Jersey and Illinois.

Insight in a statement Monday said its intention has always been to assume ownership of the facilities.

“Since taking over as interim managers of operations last month, we’ve worked closely with patients, staff, providers and members of the community to fully understand the challenges facing these groups and have taken immediate action to create a strong foundation for long-term success at these facilities and the communities they serve. The hospital is fully open and currently operating with increased volumes.”

After Insight Health was named interim operator, another suitor for the facilities emerged with an interest in acquisition — Yates Medical Group LLC of Florida, the CEO of which, Benjamin Yates, rotated at Trumbull Regional as a medical student.

He said Monday he would decide by today on whether he would object.

“We’re going to figure out tomorrow (Tuesday) if we’re going to file or not. We’re just not sure,” Yates said.

Steward Health filed bankruptcy May 6, citing billions in debt. Within days, it announced plans to sell its more than 30 hospitals.

In August, Steward health announced it planned to close Trumbull Regional, Hillside and affiliate satellite locations Sept. 20, but that was paused with the Aug. 31 announcement of settlement talks and broad outlines of an agreement. The interim plan was approved Sept. 11 by the bankruptcy court in Houston and the final settlement was approved Sept. 18.

Meanwhile, Pennsylvania will continue to fund operations at Sharon Regional Medical Center through Dec. 1, when it’s expected Meadville Medical Center will close on a purchase of the downtown Sharon, Pa., hospital.

The commonwealth agreed to pay $4.5 million — $1.5 million in September, this month and November — to keep the facility open in the meantime.

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