A group of five local people is looking to take over operations at Trumbull Regional Medical Center, one of three Valley hospitals owned by bankrupt Steward Health.

Warren City Hospital, Inc., a company formed in March to be a nonprofit, is made up of five longtime Valley residents with expertise in different areas they are now hoping to apply to the hospital industry.

The new enterprise is led by John Guarnieri, a retired businessman and president of Warren City Hospital, the organization established to organize the purchase. Other Warren City Hospital officers include Dr. Lindsey Brodell Dolohanty, vice president, a dermatologist and owner of Brodell Medical in Warren; John T. Woods, secretary, owner of Insurance Navigators Inc., a Warren health insurance agency; and Donald W. Emerson, treasurer, executive director of the Trumbull Metropolitan Housing Authority. All are members of the organization’s board of directors, along with Dr. Michael P. Slyk, a pharmacist in Howland and part-owner of several nursing and rehabilitation centers, and a member of the board of trustees for Trumbull Regional Medical Center.

“Our primary objective is to save the hospital and all it means for healthcare in the community,” said John A. Guarnieri of Howland, a retired businessman and president of Warren City Hospital, the organization established to organize the purchase. “We are concerned that if we do not buy the hospital, it may close for good. That would leave the community’s healthcare needs grossly underserved.

“We are very optimistic that, with the right management, the right contracts and sufficient funding, Trumbull can recover from its recent challenges and reestablish itself as a quality healthcare provider, as it had been known for many decades. With cooperation from key sources, we have made tremendous strides in making sure all of the needs of this complex undertaking are met. We remain focused on achieving our goals,” Guarnieri stated in the release.

21 News was the first to report a local nonprofit was seeking funding for the venture, but had been told the Trumbull Memorial Health Foundation would not be able to assist because they only provide funds to 501c3 nonprofits.

At that time, the local venture had not yet been named.

Woods said that the group expects to submit a formal offer along with a description of its plans to the bankruptcy court. Among the elements of those plans are:

  • A management company with expertise in reviving struggling community hospitals. This organization would operate Trumbull under contract with the Warren group. A tentative agreement is in place.
  • Insurance and supply contracts. The Warren group would hire a separate company to establish contracts with medical insurance providers and key medical suppliers. Negotiations are in progress.
  • Designation as a nonprofit. This would make the group eligible for foundation grants. An application to the Internal Revenue Service has been filed.
  • Formal incorporation of Warren City Hospital. This has been completed. Warren City Hospital is the hospital’s original name; the Trumbull name could not be used because it is owned by Steward Health.
  • At least $15 million in capital for the purchase and initial months of operation. Discussions with lenders, the hospital buildings’ owner and investors are in progress. Additional community support is needed to solidify investments by out-of-town investors involved in the plan.

That hurdle towards securing funding had been a stumbling block as they await final approval from the IRS to operate on their own.

Woods told 21 News they have secured $10 million of the needed funds but are still working to get another $5 million, so if their bid to purchase the facility is successful, it will allow Warren City Hospital three months of operating funds, which is $5 million per month alone goes towards staffing costs.

“All of these important steps have required tremendous amounts of time and some financial contributions, and we have been fortunate to secure all of the support we’ve needed so far,” Woods said.

“But the outside investors working with us want to see more community support before they commit. We have secured some commitments for local funding and had hoped to secure more before going public with our plans. But we are about $5 million short. A rejuvenated Trumbull is a goal shared by many in our community, so we are optimistic about closing this gap,” Woods added.

In the meantime, they've needed to secure a fiscal agent, which is sort of a "sponsor" organization. This would be an existing 501c3 that would take the new venture under its umbrella, which allows the new group to begin raising money while it's final status is pending.'

Woods says they are in current talks with three non-profits but did not say who the non-profits are.

In paperwork filed with the Ohio Secretary of State, Warren City Hospital, Inc. describes its mission as "to carry out the charitable, educational and scientific purposes of the 'qualified organization,'" naming the "qualified organization as Trumbull Regional Medical Center.

The move aims to put the hospital in local hands and remove it from being strictly subject to market forces, as the for-profit Steward Health has been.

The group plans to submit a formal offer to purchase the hospital’s assets from Steward Health Care, which has been operating under Bankruptcy Court protection since May. The decision to form the organization by the group came about after concerns over Steward's finances, and the group started talking in late 2023 and moved forward with the plan by February.

Steward Health, which also owns Hillside Rehabilitation Center and Sharon Regional hospitals locally, has been seeking buyers for its hospitals as part of ongoing bankruptcy proceedings but has also closed several in states like Massachusetts, where mass layoffs began last weekend.

Anyone interested in investing with the Warren City Hospital group can contact the group via its website, warrencityhospital.org, by phone at (330) 646-9593, or by email at [email protected].

Medical Properties Trust, the Alabama-based owner of the Trumbull Regional buildings, has been very supportive of this effort, Woods said. Several Trumbull physicians and Steward Health leaders have been helpful as well, he said. 

The group wants to return the hospital to its original name—Warren City Hospital, which first opened in 1907. Woods told 21 News the goal is to keep the staff and the doors of the facility open, yet doesn't know if other bids have been submitted for Trumbull Regional or its assets.

The next bankruptcy hearing to consider bids for Steward assets is currently on August 13.