Warren Hospital officially became St. Luke’s Warren Hospital on Wednesday, finalizing a search that began in early 2010 to become affiliated.
Today, the hospital and St. Luke’s Hospital & Health Network, based in Bethlehem, Pa., unveiled new signage indicating Warren’s induction into the system.
“Warren Hospital was a financially distressed institution that started to look for a capital partner and a strategic partner, and ultimately selected St. Luke’s as that partner,” said Robert Wax, in-house counsel for St. Luke’s. “As a start to the partnership, St. Luke’s and Warren contacted and began negotiations with the creditors to the hospital … and restructured the debt of the hospital to the point that it is much more reasonable.”
Wax said Wednesday’s announcement and celebration was because of the “accomplishment of that goal.”
Wax said the next steps in the partnership include increasing the types of services provided at St. Luke’s Warren Hospital and making capital improvements, including information technology upgrades and a new intensive-care unit.
The leadership of St. Luke’s Warren Hospital will not change at the executive level, but two Warren board members will join the St. Luke’s board, and four St. Luke’s board members will join the Warren board.
Wax said integrating Warren Hospital into the St. Luke’s network should not pose too many challenges, despite being across state lines. He added that the two sides were close to a deal in 2002, but all of the pieces came together in April 2011, when the partnership was first announced.
