Jordan Ellis
DePaul Hospital in Norfolk, Virginia, was a historical, general medical and surgical hospital affiliated with the Bon Secours Health System. The hospital was founded in 1855 as the Hospital of St. Vincent de Paul and was Norfolk's first civilian and public hospital. In 2021, Bon Secours announced its decision to close DePaul Hospital, citing extremely low patient volume and empty beds. The hospital's acute care and emergency medicine services were consolidated and moved to the Maryview Medical Center in Portsmouth. The closure of DePaul Hospital was influenced by several factors, including competition from rival healthcare providers, changes in the regional healthcare landscape, and the impact of the COVID-19 pandemic on patient volume. There were also plans to redevelop the former hospital site into luxury apartments, but those plans fell through due to rising costs and construction challenges.
| Characteristics | Values |
|---|---|
| Date of closure | April 2021 |
| Reason for closure | Low patient volume, empty beds, competition from other hospitals |
| Future plans | Redevelop the site into apartments, then sold to a non-profit to combat generational poverty |
| History | Founded in 1855, survived Yellow Fever, the Civil War, and a fire |
| Owner | Bon Secours Mercy Health |
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What You'll Learn
Low patient volume
DePaul Hospital in Norfolk, Virginia, was a historical, general medical and surgical hospital with a history spanning over 160 years. The hospital first opened its doors in 1855 as the Hospital of St. Vincent de Paul and was Norfolk's first civilian and public hospital.
In 2021, Bon Secours Mercy Health, the owner of the hospital, announced its decision to close DePaul Medical Center due to extremely low patient volume and empty beds. The hospital was seeing only 20 to 30 patients a day, far below its capacity, even during the coronavirus pandemic. Officials stated that COVID-19 had a negligible impact on their patient volume.
The low patient volume at DePaul Hospital can be attributed to several factors. One factor was the presence of competing hospitals in the surrounding area that had grown and expanded, drawing patients away from DePaul. Additionally, Bon Secours had conducted layoffs, further reducing the hospital's capacity and patient volume.
Furthermore, the departure of a large obstetric group from DePaul to Sentara Leigh Hospital led to the closure of DePaul's labor and delivery unit. This likely resulted in a significant loss of patients, especially pregnant women and those seeking obstetric care.
The low patient volume also reflected the broader trend of declining hospitals in the urban parts of South Hampton Roads, where DePaul was located. As a result, Bon Secours made the decision to shift resources from DePaul to other hospitals in the region, such as the one planned for Suffolk, seeking to consolidate and optimize its services.
DePaul Hospital's low patient volume ultimately contributed to its closure, as it could no longer sustain its operations with such low occupancy rates.
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Sentara Healthcare's lobbying
DePaul Hospital in Norfolk, Virginia, was a historical, general medical and surgical hospital founded in 1855. It was Norfolk's first civilian and public hospital. The hospital had survived a Yellow fever epidemic, the Civil War, and a devastating fire. However, it could not withstand the aggressive lobbying tactics of Sentara Healthcare, its area rival.
Sentara Healthcare, a $6 billion non-profit, tax-exempt healthcare giant, is known for its use of lobbying and influence to crush competitors. In the case of DePaul Hospital, Sentara lobbied to block the hospital's efforts to advance its operations and remain financially viable. They poached doctors from DePaul and fought the hospital's attempts to gain state government approval to update its programs.
DePaul Hospital had been facing challenges due to low patient volume and empty beds, with rumours of its potential closure circulating for at least two years. Competing hospitals in the surrounding area had grown, while DePaul's patient numbers continued to decline. The departure of a large obstetric group from DePaul to Sentara Leigh Hospital led to the closure of DePaul's labour and delivery unit.
Sentara's lobbying efforts were successful, and in 2021, Bon Secours Mercy Health, the owner of DePaul Hospital, announced the closure of the hospital. Acute care and emergency services were consolidated and moved to Maryview Medical Center in Portsmouth.
The former DePaul Hospital site was initially planned to be redeveloped into luxury apartments, but the project fell through due to rising costs and interest rates. Subsequently, the property was purchased by the "Next Step to Success" program, a non-profit organisation combating generational poverty. The site will be transformed into the "St. Vincent de Paul House," featuring learning houses, a gymnasium, a dining hall, gardens, and a soccer field to serve students in their afterschool and summer programs.
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Bon Secours' expansion plans
DePaul Hospital in Norfolk, Virginia, was a Catholic-based hospital that opened in 1855. In April 2021, Bon Secours Mercy Health announced that it would close DePaul Medical Center, citing extremely low patient volume and empty beds. Bon Secours intended to shift resources from its underused Norfolk hospital to other hospitals in the region. This decision was influenced by competing hospitals in the area and Bon Secours' previous layoffs and closures, such as the closure of Maryview's 14-bed birthing unit in 2019.
Bon Secours Mercy Health is a Catholic-based hospital system that has been operating for over 160 years. While they announced the closure of DePaul Hospital, they have also been expanding their operations in other regions. For example, in 2019, Bon Secours purchased several medical centers, including the Southside Regional Medical Center, Southampton Memorial Hospital, and Southern Virginia Regional Medical Center.
In addition to its hospital acquisitions, Bon Secours has also been investing in expansion and renovation projects. One notable example is the Bon Secours Wellness Arena, which unveiled a master plan for renovations and expansions in April 2025. The plan includes enhancements at the concourse level, adding 22,000 square feet of space, with improved accessibility, seating, restrooms, circulation, and additional food and beverage options. The expansion also includes new premium seating options, redesigned entrances for better congestion management, and a new western entrance and lobby to accommodate community events.
The Bon Secours Wellness Arena's expansion plans aim to ensure the arena remains competitive and successful in the future. While the Greenville Arena District (GAD), the owner and operator of the arena, is committed to being the primary funding source, they are also exploring additional funding sources from both the public and private sectors to support these upgrades.
While Bon Secours has faced challenges with the closure of DePaul Hospital, they continue to expand and invest in other areas of their healthcare system and infrastructure.
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Rising redevelopment costs
DePaul Hospital in Norfolk, Virginia, was a historical, general medical and surgical hospital founded in 1855. The hospital had a rich history, surviving a yellow fever epidemic, the Civil War, and a devastating fire. However, in 2021, Bon Secours Mercy Health made the decision to close the hospital, citing extremely low patient volume and empty beds.
Following the closure, there were plans to redevelop the site into luxury apartments. The Marathon Group was initially interested in redeveloping the 15-acre medical center site into nearly 500 luxury apartments. However, in 2023, the developer pulled out of the project due to rising costs and interest rates. Raffaele Allen, Marathon's chief operating officer, expressed disappointment and cited the increased interest rates and construction supply chain issues as insurmountable challenges.
The rising costs and interest rates presented significant financial hurdles for the redevelopment project. Construction projects are highly sensitive to economic factors, and the combination of increased interest rates and supply chain issues likely made the project economically unviable. The specific cost components that contributed to the rising costs are not publicly available, but they could include various factors such as labour, materials, and financing expenses.
Additionally, it is important to note that the redevelopment of a former hospital site into residential apartments also entails significant costs. Converting a medical facility into habitable living spaces requires specialized expertise and extensive renovations to ensure compliance with building codes and safety regulations. There may also be costs associated with environmental remediation, as hospitals often contain hazardous materials that require proper disposal or treatment.
Furthermore, the scale of the project, involving nearly 500 apartments, would have contributed to the overall redevelopment costs. Larger projects tend to have higher overall costs due to the increased amount of materials, labour, and time required. In this case, the size and complexity of the redevelopment may have exacerbated the financial challenges posed by the rising costs and interest rates.
In conclusion, the rising redevelopment costs, coupled with increased interest rates and supply chain issues, created an environment that made it challenging for the Marathon Group to proceed with the project. As a result, they had to make the difficult decision to withdraw from redeveloping the former DePaul Hospital site.
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The hospital's history
DePaul Hospital, also known as Bon Secours DePaul Medical Center, was a historic hospital in Norfolk, Virginia, with a history extending over 160 years. The hospital was founded in 1855 as the Hospital of St. Vincent de Paul, and it was Norfolk's first civilian and public hospital.
The hospital was originally located on Church and Wood Street in downtown Norfolk in the home of Miss Ann Plume Behan Herron, who had willed the house to the Sisters of the Daughters of Charity upon her death from yellow fever in 1855. The Hospital of St. Vincent de Paul was incorporated in 1856 by eight Daughters of Charity and was an important resource during the yellow fever epidemic. Over the years, the hospital expanded, adding a clinic for the poor in 1892 and starting a nursing school in 1893.
DePaul Hospital survived many challenges, including the Civil War and a devastating fire, while remaining true to its mission of providing care for the less fortunate. However, in recent years, the hospital faced increasing competition from other hospitals in the surrounding area, leading to low patient volume and underutilized resources. Despite its long history and dedication to serving the community, DePaul Hospital was forced to close its doors in 2021 due to financial pressures and the consolidation of services to other medical facilities.
In 2023, there were plans to redevelop the former hospital site into luxury apartments, but these plans fell through due to rising costs and construction challenges. More recently, in 2024, a new plan emerged to level the site and create the 'Next Step to Success' campus, which will include learning houses, a gymnasium, a dining hall, gardens, and a soccer field to serve students in after-school and summer programs.
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Frequently asked questions
DePaul Hospital in Norfolk closed due to extremely low patient volume and empty beds.
DePaul Hospital opened its doors in 1855 as Norfolk's first civilian and public hospital. It survived a Yellow Fever epidemic, the Civil War, and a devastating fire.
There were plans to redevelop the former hospital into 500 luxury apartments. However, the developer pulled out due to rising costs and interest rates.
Competing hospitals in the surrounding area grew, while DePaul struggled to update its programs and retain doctors due to the actions of its rival, Sentara Healthcare.
Yes, a new plan emerged to repurpose the site for a non-profit organization called "Next Step to Success," which aims to combat generational poverty through learning houses, a gymnasium, a dining hall, gardens, and a soccer field.
