Jordan Ellis
Lakewood Hospital, which first opened in 1907, was slated for closure in 2015. The hospital, located in Lakewood, Ohio, was a source of pride for residents, many of whom had personal connections to it. The decision to close the hospital was made due to economic reasons, as the hospital had been losing money since 2005. The Cleveland Clinic, which operated the hospital, intended to replace it with a smaller outpatient health center and emergency room. This decision sparked opposition from residents, who turned out for community meetings and demonstrations to prevent the closure. Despite these efforts, the hospital closed, and redevelopment plans for the site were approved in December 2024, with a focus on bringing new housing, retail spaces, and a public plaza to the area.
| Characteristics | Values |
|---|---|
| Year of Closure | 2015 |
| Location | Cleveland, Ohio |
| Reason for Closure | Economic reasons, shifting patient numbers and demographics |
| Redevelopment | $119 million project to bring housing units, retail space, and a public plaza |
| Year of Redevelopment | 2025 |
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What You'll Learn
The hospital's closure was due to economic reasons
Lakewood Hospital in Lakewood, Ohio, opened in 1907 and closed in 2016. The hospital's closure was due to economic reasons. The Cleveland Clinic, one of the largest nonprofit health systems in the U.S., operated Lakewood Hospital for the city but had been losing money since 2005.
Executives at the Cleveland Clinic explained that the hospital needed to be replaced by a smaller outpatient health center and emergency room. They also noted that residents with inpatient needs could be served by other nearby Cleveland Clinic-owned hospitals, including one being built in a more affluent suburb.
The economic status of patients was also an indirect factor in the hospital's closure, according to Paul Ginsburg, chairman of medicine and public policy at the University of Southern California. Ginsburg stated that hospitals are incentivized to treat privately insured patients over other patient types due to higher payments. This results in lower payments for hospitals treating Medicaid and uninsured patients, which can impact their financial viability.
The closure of Lakewood Hospital was part of a broader trend of small hospitals across the country shutting down as patient numbers and demographics shift with changing economies. The hospital's closure was met with resistance from the community, with some residents expressing concern about the impact on the neighborhood and others sharing personal connections to the hospital.
In 2024, the City of Lakewood approved a formal agreement for the redevelopment of the former Lakewood Hospital site, with plans to bring new housing units, retail space, and a public plaza to the area.
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A lawsuit was filed to keep the hospital open
In 2015, Attorney Christopher DeVito filed a lawsuit against a slew of defendants, seeking to keep Lakewood Hospital in Ohio open until at least 2026 and receive $400 million in damages for the city. DeVito's documents claimed a "covert scheme" by the Clinic to close the hospital, which the Clinic denied. The case was still pending in Cuyahoga County Common Pleas Court as of 2015.
The lawsuit was filed in response to the decision by the Cleveland Clinic, one of the largest nonprofit health systems in the US, to close Lakewood Hospital, which had been losing money since 2005. The Cleveland Clinic planned to replace the hospital with a smaller outpatient health center and emergency room, and directed residents with inpatient needs to other nearby Cleveland Clinic-owned hospitals, including one being built in a more affluent suburb.
The proposed closure of Lakewood Hospital sparked strong opposition from the community, with hundreds turning out for a community meeting in January 2015 to heckle city leaders and hospital executives who tried to make a case for the closure. Many residents had a personal connection to the hospital, which had been a source of pride for generations. Former U.S. Rep. Dennis Kucinich also spoke in favor of saving the hospital.
In addition, a group called the Right to Vote Committee put an issue on the November ballot to make it more difficult to close the hospital, but it failed with 48% of the vote. The issue would have required approval from voters before the City Council could close or reduce services at the hospital.
The closure of Lakewood Hospital reflects a broader trend of small hospitals across the country shutting down as patient numbers and demographics shift with changing economies. Economic forces are squeezing hospitals like Lakewood, with fewer patients being admitted and shorter lengths of stay impacting the financial viability of these hospitals.
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The hospital was a source of pride for residents
The city of Lakewood purchased the hospital in 1931, and it had a long history of serving the community. In 2006, the hospital offered 400 beds and a medical staff of over 500, providing a range of diagnostic, therapeutic, and specialty services. However, by 2015, the hospital was facing economic challenges, with declining patient numbers and a shift in demographics.
The decision to close the hospital was met with strong opposition from residents. Hundreds of people turned out for a community meeting, heckling city leaders and hospital executives who tried to make a case for the closure. A lawsuit was even filed seeking to keep the hospital open until at least 2026. Despite these efforts, the hospital closed, and in 2024, the city approved a redevelopment plan for the site, including housing, retail space, and a public plaza.
The closure of Lakewood Hospital reflects a broader trend of small hospitals across the country closing due to economic pressures. As patient numbers decline and demographics shift, hospitals are struggling to stay afloat financially. In the case of Lakewood, the hospital also faced competition from nearby Cleveland Clinic-owned hospitals, including one being built in a more affluent suburb.
The loss of the hospital was significant for the community of Lakewood, and the fact that residents rallied to keep it open demonstrates the sense of pride and connection they felt towards it. While the closure may have been a necessary economic decision, it also represented a loss of a valued community resource and a piece of the city's history.
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The site will be redeveloped with housing and retail space
Lakewood Hospital, which first opened in 1907, was slated for closure in 2015. The hospital was a source of pride for residents, with many personal connections to it through birth, illness, or employment. However, economic forces and shifting patient demographics led to the decision to close the hospital. The Cleveland Clinic, which operated the hospital, had been losing money since 2005, and executives decided to replace the hospital with a smaller outpatient health center and emergency room.
The closure of Lakewood Hospital sparked some controversy, with residents and community groups demonstrating to prevent the closure and even filing lawsuits. Despite these efforts, the hospital closed, and redevelopment plans for the site began.
In December 2024, the City of Lakewood, Ohio, approved a formal agreement for the redevelopment of the former Lakewood Hospital site. The agreement was made with the development team of CASTO Communities and North Pointe Realty CASTO Communities, setting the stage for a $119 million project to break ground in 2025. The redevelopment plans include:
- Hundreds of housing units, providing diverse options for residents.
- Approximately 25,000 square feet of new ground-floor retail space, adding to the bustling downtown business district.
- An inviting public plaza and additional community spaces for public events and gatherings, promoting downtown vitality and walkability.
- A total of 567 structured parking spaces, including a 536-space parking garage serving the development and providing additional public parking.
- Historic preservation of the Curtis Block, a significant aspect of the design.
The redevelopment project is expected to bring new jobs and income tax revenue to Lakewood, strengthening the city and making it a more desirable place to live and raise a family.
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The city of Lakewood was within its rights to sell the hospital site
The City of Lakewood, Ohio, was within its rights to sell the hospital site. The hospital, which opened in 1907, was purchased by the city in 1931. In 2015, the city council voted to approve the sale of the hospital and its site to The Cleveland Clinic, with the hospital set to close in the next two years. This decision was made due to economic reasons, as the hospital had been losing money since 2005. With fewer patients being admitted and shorter stays, the hospital was facing financial challenges common to many inner-ring suburbs at the time.
The city's decision to sell the hospital site was not without opposition. Residents held protests and community meetings, expressing their personal connections to the hospital and their desire to keep it open. A lawsuit was also filed by Attorney Christopher DeVito, seeking to keep the hospital open until at least 2026 and claiming a "covert scheme" by the Clinic to close it. Despite these efforts, the hospital closed, and the site was sold for redevelopment.
The city of Lakewood had the legal authority to sell the hospital site, as confirmed by Lakewood Ordinance 27-18, adopted and approved on May 8, 2018. This ordinance was in accordance with the Ohio Constitution, the Ohio Revised Code, and the city's own charter and codified ordinances. According to the Ohio Constitution Article XVIII, Section 3, municipalities have the power to "exercise all powers of local self-government" and buy and sell property with the approval of the city council.
The sale of the hospital site by the City of Lakewood was a complex process involving economic factors, legal considerations, and community input. While the city had the right to sell the site, the decision was met with resistance from residents who valued the hospital's presence in the community. The redevelopment of the site is expected to bring new housing, retail spaces, and a public plaza to the heart of Downtown Lakewood, with the goal of strengthening the city and making it a more desirable place to live.
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Frequently asked questions
Yes, Lakewood Hospital closed in 2016.
The Cleveland Clinic, which operated the hospital, had been losing money since 2005. Executives decided to close the hospital and replace it with a smaller outpatient health center and emergency room.
The hospital site was sold to Carnegie Management & Development Corporation. The city of Lakewood approved a $119 million redevelopment project to bring housing units, retail space, and a public plaza to the site.
Yes, there was significant opposition to the closure. Residents held protests and a lawsuit was filed seeking to keep the hospital open until at least 2026.
