The agreement would have to be approved tonight by Massillon City Council, which has called a special meeting.
CANTON The city of Massillon and Affinity Medical Center operators reached a proposed settlement, allowing the city to acquire more than $25 million worth of property and medical equipment with the hopes of eventually reopening the site as a hospital.
The tentative resolution, announced during a hearing in Stark County Common Pleas Court Thursday, needs the approval of Massillon City Council, which has called a special meeting at 7:30 tonight.
A court hearing that initially had been scheduled to debate whether Affinity would have to remain open for roughly three more months instead unveiled some of the details of the proposed settlement that would give the city property and buildings valued at $25.88 million on the Affinity campus, according to attorneys representing the city of Massillon and a group of Affinity physicians.
The properties and assets will allow the city to pursue potential options, including an employee or community-owned hospital. Another possibility is another hospital or medical interest would acquire and operate the hospital, Plakas said. He noted that community-owned hospitals have been operated successfully across the country.
In the short-term, under the proposal, Affinity Medical Center would stay open until Feb. 11, including the emergency room. However, no new patients will be accepted beginning today, said David Dingwell, one of the attorneys representing the city. Affinity-affiliated offices staffed by Affinity doctors can remain open until March 6 under the proposed settlement, Dingwell said.
Fellow attorney Lee Plakas said he believes it's possible the hospital, after its closure, could reopen and be functioning again "substantially" in less than a year.
"It's hard to argue with the ability to control your own destiny," the attorney said following the hearing. "It's hard to argue with the benefit of receiving over $25 million worth of real estate assets. If you have those assets, that's a jump-start to being able to proceed with any number of potential plans that can be a benefit to the city and the entire western Stark County community."
When medical equipment, furniture and other items are included, the total value of the property and assets is estimated at $30 million or more, Plakas said.
When Affinity announced a Feb. 4 closing last month, the hospital employed about 800 people, he said. Plakas said he didn't have a current employment number.
Following the hearing, Plakas said that the city of Massillon would incur costs from acquiring the properties and assets, what he described as "the assumption of certain obligations under certain medical office leases," though a specific monetary figure was not available. The issue is expected to be a topic of discussion at the Massillon City Council meeting tonight.
'Best interests of Massillon and Stark County'
Prior to announcing the closing, Affinity officials had said in court filings the hospital had been unsuccessful in finding a buyer. Affinity also said in court papers the hospital has sustained large financial losses in recent years. Tennessee-based Quorum Health owns Affinity.
The Massillon mayor's office also had been working to find a buyer for Affinity.
Resurrecting the hospital will require a robust community-wide effort, Plakas said.
"We believe that this proposed resolution enables the community, community leaders and community foundations to have a substantial base from which they can continue the proud tradition and community benefit of a local hospital," Plakas said during the court proceeding.
"We believe that with (the properties and assets), the community, the leaders, the physicians (and) the foundations can create a number of options that can continue to work for the best interests of Massillon and Stark County," he added.
Orville Reed, one of the attorneys representing the hospital, said during the brief hearing the proposed resolution is a "win-win" for both Affinity and the community. Stark County Common Pleas Court Judge Chryssa Hartnett echoed the sentiments, commending the parties for working tirelessly to reach the proposed settlement. Following the hearing, she sought out attorneys to shake hands.
Once the formal resolution is reached, the parties agreed Hartnett will retain jurisdiction over the case for 90 days to enforce the agreement. The judge noted the settlement documents had not been finalized.
No final agreement yet
When The Canton Repository requested a copy of the proposed settlement, Dingwell, one of the attorneys representing Massillon, said no settlement-related documents have been filed with the court and it will take at least a week for lawyers on both sides to draft a formal settlement agreement.
The settlement also will render moot a challenge filed earlier this week by Affinity with the Ohio Supreme Court in an effort to stop Massillon's efforts to keep Affinity open for roughly three more months.
The apparent resolution also follows about two weeks of contentious court filings shooting back and forth between the parties.
"It does appear to fit the definition ... (of) a win-win, which is really the definition of something a global resolution that can benefit all parties," Hartnett said before the hearing concluded. "And I'm obviously pleased that this agreement has been reached."
Reed noted that the proposed agreement excludes some portable equipment.
Reach Ed at 330-580-8315
and ed.balint@cantonrep.com
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