St. Luke’s Hospital has hired a national health-care consultant to “evaluate our strategic and financial position” and identify opportunities that can “best position” it for the future, according to a statement attributed to Dan Wakeman, St. Luke’s president and chief executive officer.
The independently owned hospital, which had tried to become part of the ProMedica system while struggling to stay afloat nine years ago, said it continues to face growing financial challenges in the health-care industry.
“In light of the striking changes in health care — both locally and nationally — St. Luke’s continues to assess and implement strategic and operational changes necessary to best secure the future of the hospital’s ability to meet the needs of our community by providing high quality, comprehensive services,” according to Mr. Wakeman’s statement.
“St. Luke’s has retained a national health care strategic advisory firm to work with our board, medical staff and leadership team,” the statement continued, “to evaluate our strategic and financial position and identify specific opportunities to best position St. Luke’s to continue the important role it plays in delivering critical and important health services to the community, providing an attractive environment for our physicians to practice, and being an employer of choice for our staff.”
He went on to say the board and hospital management are committed to serving the community and “are focused on increasing our value and relevance.”
Jean Gillen, project manager for marketing communications, declined to elaborate on Mr. Wakeman’s statement or the hospital’s finances. She said the statement came in response to a recent meeting with employees in which the news was announced.
“We shared with employees we hired a strategic consultant,” she said. “We try to be transparent with employees.”
St. Luke’s officials told The Blade editorial board in early 2011 that the facility was losing too much money back then to remain the area’s sole independent hospital. They said if the proposed 2010 merger with ProMedica didn’t go through, St. Luke’s would have to shut down.
The proposed merger ultimately was denied.
The Federal Trade Commission ruled against it in 2011, claiming it violated anti-monopoly laws and would have increased prices for consumers. A lengthy court battle ensued in hopes of keeping the proposed merger intact. That effort failed in May of 2015, when the U.S. Supreme Court refused to hear the case. A three-judge Sixth U.S. Circuit Court of Appeals panel in Cincinnati had upheld the FTC’s order to separate in 2014.
The divestiture became official on July 1, 2016, making St. Luke’s an independent hospital again.
St. Luke’s claimed that by then, though, its finances had improved significantly.
First Published September 30, 2019, 11:36 p.m.
