NEWARK − The Licking County Hospital Commission officially concluded its 61-year lease on the land beneath the Licking Memorial Hospital, finalizing the conveyance of this property to the hospital itself. This significant transfer marks a pivotal moment in the relationship between the county and the hospital, as ownership of the land reverts to the medical institution after decades of leasing.
The decisive vote by the commission, which resulted in a 5-1 outcome on Thursday, was made in response to a formal request from Licking Memorial Hospital. Subsequently, the Licking County Commissioners took prompt action to facilitate the transfer of the land to the hospital and announced the dissolution of the Hospital Commission, which had been established in 1962 in an effort to oversee hospital operations and safeguard community interests.
A complex legal battle involving the hospital, the county commissioners, and local media outlet The Advocate reached the Ohio Supreme Court, but a settlement was reached on November 18, 1998, without a formal court adjudication on the status of the hospital as either a public or private entity. The ambiguity surrounding the hospital’s classification has persisted, leading to debates and discussions over the years.
In 2004, a nine-member Licking County Health Issues Advisory Committee, which was established by the county commissioners but did not possess any formal legal power, determined that Licking Memorial Hospital should be regarded as a public institution, referencing a resolution passed by the commissioners in 1961, alongside leases from 1963 and subsequent years. This finding reflected a community perspective on the hospital’s role and accountability.
Ken Oswalt, a former county prosecutor now serving as the compliance officer for the county commissioners, expressed his belief that the recent rulings by both the Hospital Commission and county commissioners will likely alter the arguments surrounding the hospital’s classification. “I think it’s pretty clear it’s no longer a public entity,” Oswalt commented, indicating a shift in the hospital’s operational framework. He suggested that while the hospital may provide board meeting minutes, their openness is likely to be constrained.
The transparency of Licking Memorial Hospital’s board meetings has been a focal point of public interest since the settlement of the 1998 lawsuit, with meetings having been regularly open to public attendance since then. Licking Memorial Health Systems President & CEO Rob Montagnese emphasized that their organization is a private, not-for-profit entity, maintaining a commitment to transparency and community engagement, despite not having plans to alter their current open meeting practices.
Virginia Beach, the sole Hospital Commission member who opposed the termination of the lease, raised questions about the hospital’s earlier request to extend the lease until 2038, pointing out a contradiction in its recent demand for termination. “They asked us to renew the lease and we did that,” Beach remarked, expressing confusion over the motivations behind the hospital’s decision after maintaining the lease for six decades.
Montagnese clarified that Licking Memorial has aspired to own the property for numerous years, emphasizing the importance of land ownership as the hospital continues to invest significantly in physical infrastructure and technological advancements to enhance patient care.
County Commissioner Tim Bubb responded directly to Beach’s concerns, stating, “My answer is simply it’s time to do it. It’s their hospital. It was never given to us to be their overseer. It’s time to put it back to where it’s supposed to be. We have no land interest in it.” This stance underscores the commissioners’ desire to respect the hospital’s autonomy and mission.
Beach noted that the existing lease outlines stipulations, including mandates for the hospital to remain nonprofit and prohibitions against subleases or benefits to private individuals, as well as requirements for maintaining equipment and property adequately. Bubb explained that such provisions were likely included in the original lease to protect the county’s interests, particularly concerning previous financial obligations that have since been resolved.
The question of the hospital’s public versus private status has stirred considerable community debate, especially during the late 1990s to early 2000s when public criticism surrounding management, staffing conditions, employee turnover, patient care, and emergency response times reached a crescendo. Following these turbulent years, Montagnese took the helm as president and CEO of Licking Memorial Health Systems in 2006, ultimately leading the hospital to a remarkable turnaround in reputation and community relations.
“It’s not just about the land,” Beach remarked, highlighting the significance of leadership stability. “If Rob could be there forever, we would be fine. We all agree he’s done a great job, but he’s not going to be there forever.” This statement reflects a broader concern within the community regarding the continuity of effective leadership as the hospital navigates this transition.
A historical perspective reveals that according to a 1962 article from The Advocate, both the site and the $6.4 million hospital building were to be governed by the Licking County Hospital Commission, which was composed of members appointed by the county commissioners to ensure comprehensive representation and oversight in hospital matters. “We have named it the Licking County Hospital Commission, with members from all over the county to represent the people and look after their investment in the building,” County Commissioner Herbert Koontz stated at the time, highlighting the commission’s commitment to the community’s financial interest in the facility.
The Licking County Hospital Association, established in conjunction with the commission, was responsible for the hospital’s regular operations and management, utilizing its own operating funds, according to the historical documentation from 1962. The hospital has made significant strides since then, as evidenced by its impressive operational metrics: in 2023, the 227-bed facility reported 8,555 admissions, 50,365 emergency department visits, and the delivery of 810 babies, supported by a staff of 1,613 full-time equivalents and 162 medical professionals. Licking Memorial Health Professionals boasts a skilled team of 118 physicians.
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What are the implications of Licking Memorial Hospital owning the land it resides on for future healthcare initiatives?
**Interview with Rob Montagnese, President & CEO of Licking Memorial Health Systems**
**Interviewer:** Thank you for joining us today, Rob. Let’s talk about the significant recent development: the conclusion of the 61-year lease on the land beneath Licking Memorial Hospital. Can you give us some insights into why this transfer of ownership is important for the hospital?
**Rob Montagnese:** Thank you for having me. This transfer represents a monumental step for Licking Memorial Hospital. Owning the land allows us greater autonomy to make long-term investments in our facilities and technology, which ultimately enhances the quality of care we can provide to our community. It’s been a longstanding goal of ours, and we’re excited to have it finalized.
**Interviewer:** There has been a lot of discussion surrounding the hospital’s classification as either a public or private entity. How do you view this issue, and what impact do you think the transfer will have on those ongoing debates?
**Rob Montagnese:** We have always maintained that Licking Memorial is a private, not-for-profit organization dedicated to serving our community. This transfer should help clarify our status as we move forward. While we want to remain transparent, the shift in ownership will likely change the dynamics of that discussion and reduce some of the ambiguity surrounding our classification.
**Interviewer:** Virginia Beach, a member of the Hospital Commission, expressed concerns about the hospital’s earlier request for a lease extension versus its recent decision to terminate the lease. Can you elaborate on the hospital’s position regarding land ownership?
**Rob Montagnese:** Certainly. While there were discussions about extending the lease, our vision has long been to own the property. This ownership allows us to ensure that we can make the necessary advancements—both physical and technical—that will benefit our patients and community in the long run. We value the relationship with the county but believe that it’s time to take this step.
**Interviewer:** County Commissioner Tim Bubb mentioned that the hospital’s autonomy should be respected, stating, “It’s their hospital.” How does this sentiment resonate with your vision for Licking Memorial?
**Rob Montagnese:** I couldn’t agree more with Commissioner Bubb. This hospital exists to serve the people of Licking County, and our goal has always been to operate independently while being accountable to the community. The autonomy allows us to focus on our mission without external oversight, ensuring we meet the healthcare needs of local residents effectively.
**Interviewer:** Lastly, can you address any changes in your board meeting transparency in light of the hospital’s private status?
**Rob Montagnese:** Our commitment to transparency and community engagement remains unchanged. We intend to keep our board meetings accessible as they have been since the settlement in 1998. We believe in maintaining open channels of communication with the community, and this will continue to be a priority for us moving forward.
**Interviewer:** Thank you for your insights, Rob. It’s clear that this transition marks an important chapter for Licking Memorial Hospital and its connection to the community.
**Rob Montagnese:** Thank you for having me. We’re excited about the future and our ability to serve the community even better.
