Leaders from the unions representing workers at Akron General say they support the recently announced deal to sell a minority interest in the health system to Cleveland Clinic.
Akron Mayor Don Plusquellic said this week, however, that he still has concerns about outside institutions buying into Akron’s hospitals.
Akron General had been seeking a larger health system partner to help navigate changes and financial challenges within the health-care industry.
Another deal to sell the health system to a joint venture between the Cleveland Clinic and for-profit hospital chain Community Health Systems fell through last year.
The new deal with the Cleveland Clinic “is way better than if they would have went with the for-profit CHS kind of model,” said Mark Whitehurst, co-chair of the Professional Staff Nurses Association, the local unit of the Ohio Nurses Association. The union represents about 700 nurses at Akron General.
“I think, honestly, this is the best deal that could have been done for Akron, for Akron General and, I hope, for my nurses that I represent,” he said. “We’re real happy that Akron General joined with the Cleveland Clinic. We understand how health care is going, and Akron General is going to have a hard time out on their own.”
Tim O’Daniel, president of the United Steelworkers of America Local 1014L agreed, saying: “I think it’s a real good option, simply because the Cleveland Clinic is a great, recognized name.”
The union represents about 775 technical, clerical and support workers at Akron General.
“People hear the name ‘Cleveland Clinic’ and they think, ‘quality health care,’ ” O’Daniel said. “It can’t hurt Akron General. Of any merger I can think of, this is the best option. I can’t think of a better hospital to affiliate with.”
$100 million deal
Akron General announced during its Centennial Gala on Saturday evening that it has finalized its agreement to become an affiliate hospital of the Cleveland Clinic in a $100 million deal. Under the six-year agreement, the Northeast Ohio health-care giant has the option to fully acquire Akron General any time after the first year.
The health system includes Akron General Medical Center, physician practices, Visiting Nurse Service and Affiliates, Hospice of VNS, Lodi Community Hospital, Edwin Shaw Rehabilitation Institute, three health and wellness centers and other outpatient locations.
Hospital leaders have refused to say the exact ownership percentage the Cleveland Clinic will acquire when the sale closes, possibly as early as next week.
O’Daniel said he has heard concerns from employees about what the affiliation will mean for their jobs and their union contract, which continues through mid-2016.
The nurses’ union contract with Akron General runs through 2017.
Akron General leaders have said that its nearly 5,000 workers will remain employees of the health system after the deal closes.
“I think I’ve tried to calm some fears,” O’Daniel said. “We’re still Akron General Medical Center. We still have a contract in place. We are fully represented ... Our members are worried that they’re not going to be represented, and I am reassuring them, ‘Oh, yes, we will.’ ”
Mayor voices concerns
Plusquellic said community leaders need to be “continuously concerned and be vigilant” about potential loss of local health-care services and jobs.
“I think we need to watch,” he said. “If a bunch of jobs get shifted to Cleveland, I don’t think that’s good for us.”
Akron General Health System President and Chief Executive Dr. Thomas “Tim” Stover has said the deal enhances care in Akron and brings services to the community.
“You’re going to see the Cleveland Clinic services combined with the Akron General services here at Akron General,” he said.
The mayor repeatedly has advocated for Akron General and Summa to join forces, rather than allowing hospital systems from outside the community to gain ownership interests.
Summa Health System, Akron General’s cross-town rival, entered its own $250 million deal last year, giving a 30 percent ownership stake to HealthSpan Partners, an auxiliary of Cincinnati-based Mercy Health, formerly known as Catholic Health Partners.
“The people who are here in Akron, who are going to care about their own and their kids’ and their grandkids’ health care and the future of health care here, we have to be constantly concerned and be watchful about what these outside organizations are going to do with our hospitals,” Plusquellic said.
Summit County Executive Russell Pry said this week that he had not discussed the effect of the affiliation with leaders from Akron General and the Cleveland Clinic.
“I’m hopeful that this is a good thing for the area and the community,” he said. “My hope is we’re able to maintain local leadership here at the hospital and they continue to have the same interests in Akron that they’ve always had.”
Cheryl Powell can be reached at 330-996-3902 or cpowell@thebeaconjournal.com. Follow Powell on Twitter at twitter.com/CherylPowellABJ.