Mercy Health hits pause on new St. Joseph Warren County Hospital, citing economic factors

Cincinnati-based Mercy Health has announced a “temporary pause” on a new hospital in Northeast Ohio as economic instability continues to rock the construction industry.

Mercy Health recently announced plans to construct a new hospital in Trumbull County's Champion Township, but according to a statement provided to the Business Courier, it will now resume planning “at a future date."

“Due to the current national economic volatility, inflationary pressure and financial challenges health care systems nationwide are experiencing, we’ve made the difficult decision to temporarily pause the project at this time,” the statement reads.

The current St. Joseph Warren Hospital, which is located about 35 miles northwest of Youngstown, is continuing operations during this time and will serve those in the Mahoning Valley.

The Tribune Chronicle first reported the project’s pause Dec. 9. According to that report, Mercy Health - Youngstown was planning to relocate its St. Joseph Warren County Hospital to a new 62.8 acre site in Champion Township. According to WKBN First News 27, the Kent State University Board of Trustees approved to sell about 63 acres to Mercy Health in 2020. The plan to move forward with the hospital and medical complex was announced in May.

The decision to pause plans for the Champion Township location comes as increasing federal interest rates and skilled labor shortages bog down the construction industry. Additionally, inflation and the supply chain are making it more difficult for builders to get their hands on materials. In Cincinnati, those factors are leading to predictions of a cooling residential real estate market and increased construction timelines.

Mercy Health – Cincinnati is the affiliate for five of Greater Cincinnati’s hospitals with the largest total expenses. It is working on construction of a new hospital in Mason, which is expected to be completed in fall 2023.   

Mercy Health operates more than 250 health care organizations in Ohio and Kentucky. It is the largest health system in Ohio and one of the state's largest employers.