Robinson Memorial Hospital announced today that the tax exempt status of Robinson Health System, Inc. was approved by the Internal Revenue Service on September 30, 2013. This approval is a key step in the hospital’s plans to convert from county ownership to not-for-profit. Robinson Health System, Inc. was formed in November 2012 as an Ohio not-for-profit corporation.
Robinson Health System, Inc. did enter into a lease agreement for Robinson Memorial Hospital with the Portage County Commissioners on November 13, 2012. The effective date of the lease agreement was contingent on the approval of tax exempt status for Robinson Health System, Inc.
Stephen Colecchi, President and CEO of Robinson Memorial Hospital, stated that “this approval is very important because it now allows the hospital to complete its conversion to not-for-profit status.” The Robinson Memorial Hospital Board of Trustees formally proposed to the Portage County Commissioners a lease of the hospital to allow a conversion to not-for-profit status on August 9, 2011.
Colecchi stated, “We have notified the County Commissioners that we will begin operating Robinson Memorial as a not-for-profit hospital on January 1, 2014. This will allow us enough time to share information with our employees regarding the new employee retirement and benefits plans.”
“The conversion of Robinson Memorial to not-for-profit is an important step in the history of the hospital and will give us the flexibility to partner with other health care providers to continue to meet the healthcare needs of the residents of Portage County.” Colecchi said.
Robinson Health System, Inc. will be governed by a fifteen (15) member board of directors. The initial board of directors will consist of the ten (10) current members of the Robinson Memorial Hospital Board of Trustees and five (5) new board members. According to Colecchi the selection of the new board members will be finalized in the next several weeks. The increase in the number of board members will result in a broader community representation on the hospital board.