CLEVELAND, Ohio, and STUART, Fla. – Martin Health System and Cleveland Clinic signed a definitive agreement resulting in Martin Health becoming a full member of the Cleveland Clinic health system, pending federal and state regulatory reviews. The agreement comes six months after the two organizations executed a Letter of Intent to explore opportunities for Martin Health to become part of Cleveland Clinic. During that time, both organizations conducted rigorous due diligence and negotiations.
“As part of Cleveland Clinic, we look forward to enhancing our services now and in the future,” said Robert L. Lord Jr., Martin Health President and CEO. “I believe joining Cleveland Clinic will be extremely beneficial for Martin Health and Treasure Coast residents. Our organizations share similar cultures and a mission to provide exceptional care to the communities we serve.”
Upon the closing of this transaction, Martin Health joins a health system that is consistently ranked among the nation’s best. Cleveland Clinic has pioneered many medical breakthroughs and has been sought out by patients from every state in the U.S. and 185 countries.
Martin Health features three hospitals with 521 beds, a 150-member employed physician group, and a full range of outpatient services located in one of the fastest-growing areas of southeast Florida.
The next step in finalizing this agreement will be state and federal regulatory reviews. Pending these regulatory reviews, the two health systems will begin a thoughtful integration process.
“We are pleased to welcome Martin Health to join Cleveland Clinic,” said Tom Mihaljevic, M.D., CEO and President of Cleveland Clinic. “By working closely with Martin Health, we will enhance access to the highest quality care, improve outcomes and increase efficiencies to advance healthcare together in the Treasure Coast.”
In January, Martin Health and Cleveland Clinic entered into a heart and vascular affiliation, during which both organizations recognized synergies and a similar mission. Since that time, teams with both organizations have worked closely to develop processes, procedures, protocols and data reporting within the Frances Langford Heart Center at Martin Health. Edward Savage, M.D., a cardiothoracic surgeon from Cleveland Clinic Florida, recently joined Martin Health and is performing heart and lung surgeries at Martin Medical Center.
“Martin Health and Cleveland Clinic have a shared mission, vision and culture focused on providing exceptional care for patients,” said Wael Barsoum, M.D., CEO and President, Cleveland Clinic Florida. “Our goal is to combine the clinical expertise and resources of both organizations to strengthen and improve access to high-quality, affordable health care services and make this the best place to work and provide care.”
Details of the Definitive Agreement:
- Cleveland Clinic plans to make a financial commitment of $500 million over five years into Martin Health System. These funds will be used for Martin Health System’s strategic and capital needs, as well as other programs and services.
- Cleveland Clinic has committed to supporting Martin Health associates: their employment and benefits will be maintained for at least one year from the finalization of the agreement.
- Cleveland Clinic will also support Martin Health’s commitment to its retirees.
- Cleveland Clinic will support the open medical staff model of Martin Health and work collaboratively with independent physicians.
- Cleveland Clinic will continue to support those non-profit organizations Martin Health has worked with through the years to enhance the health and well-being of residents of the community, including wellness initiatives, health education and community programs.
- As not-for-profit health systems, both Cleveland Clinic and Martin Health have a tradition of providing charity care to the communities each serves. As such, together Cleveland Clinic and Martin Health will continue to provide financial assistance to those in need.
While this agreement moves to regulatory review as part of the next step in this process, Martin Health will continue all current operations, services and programs and patients will continue to see their same physicians and providers and all procedures and outpatient appointments will proceed as scheduled.
Philanthropic gifts provided to enhance care at Martin Health will continue to go directly to Martin Health and stay in the community unless otherwise designated by the donor.
Editor’s Note: Cleveland Clinic News Service is available to provide broadcast-quality interviews and B-roll upon request. B-roll video for Cleveland Clinic and Martin Health is pasted below.