A hospital closed by another health system represents possibility for Mercy Health — Toledo, which is part of a partnership redeveloping the 73-acre campus for housing and medical offices.
The main building is expected to be demolished early next year. It used to be St. Luke's Hospital, which was owned by McLaren Health Care and closed in 2023. It is in Maumee, a suburb about 10 miles southwest of Toledo.
The site will be redeveloped as workforce housing, multifamily residences, retail and other supporting services. Mercy Health care providers already are moving into the nine medical buildings surrounding the hospital. The redevelopment plans include upgrades to those buildings.
"It goes back to our mission statement which calls us to extend the compassionate ministry of Jesus by being of good help to those we serve," said Bob Baxter, president of Mercy Health — Toledo, who leads operations for seven hospitals, one college, and more than 100 care facilities across Northwest Ohio and Southeast Michigan. Mercy Health Perrysburg Hospital is about 3 miles south of the Maumee campus.
The metropolitan statistical area of Toledo has about 600,000 people, with about 13,600 in Maumee.
Baxter explained that Mercy Health had not served that particular area, and that housing is always needed, especially for seniors. "It really was an extension of our ministry into a new area and being responsive to the needs of that community," he said.
Mercy Health — Toledo is a part of Bon Secours Mercy Health.
Making the transition
The decision to close the previous hospital for financial reasons was emotional for its employees, Baxter said. More than 400 of its 700 staff moved to Mercy Health — Toledo.
"Our position was, look, if you were an employee in good standing with St. Luke's, we'll hire you. That's all the reference we need," Baxter said.
Chaplains from Mercy Health — Toledo performed a laying of the hands for staffers during the transition, he said. "I think that was a healing moment for people who were in the room at that time," he said.
The former St. Luke's Foundation also merged with Mercy Health Foundation Greater Toledo, and as part of the merger they created a legacy fund to boost health and wellness services in the former hospital's service area.
It wasn't cost effective or practical to reopen the hospital itself, built in the 1970s.
"We looked at every way that we could repurpose the building, and it just never got to a point where it was feasible," said Matt Sapara, vice president of business development and advocacy at Mercy Health — Toledo. "We have the right developer, and it's going to be something really special out there."
Partnership for development
Bon Secours Mercy Health acquired the St. Luke's campus in 2023. In April, Crown MedRealty Partners and EPC Real Estate Group announced the purchase of the campus from the health system. As part of the $33.9 million transaction, the office buildings are leased for 15 years to Bon Secours Mercy Health.
The developers are working closely with the city of Maumee and released a concept plan with the spring announcement. Readying the site and demolishing the hospital will take about two years. They expect housing construction to start after that.
The development will integrate with green space and parks in the area.
"We can also create what I would call an environment for body, mind and spirit," Baxter said.
Steve Bessenbacher, chief operating officer and managing partner of Crown MedRealty, said in a statement that his company always aspires to partner with physicians and health systems to reach their strategic goals.
"The opportunity with Bon Secours Mercy Health System in Maumee encompasses that business approach 100%," he said.
Maumee Mayor Jim MacDonald said in an interview that Mercy Health leaders have been good to work with. He said the site is in a desirable location off an expressway, and that single-family and senior housing is needed. "We're excited," he said of the project. "I think it fits the neighborhood. I think it fits the need for the area."