Why can’t the city just enforce the 1996 lease and require the Cleveland Clinic to continue to operate Lakewood Hospital for the remaining term of the lease?
This question goes to the heart of persistent misconceptions about Lakewood Hospital. The city is not a party to any agreement with the Cleveland Clinic. The parties to the 1996 lease are the city and LHA. Under the lease, LHA makes a commitment to run a hospital, not the Cleveland Clinic. The Cleveland Clinic is not a party to the lease and does not have any rights or obligations under the lease.
The agreement to which the Cleveland Clinic is a party is the 1996 definitive agreement. LHA and the Cleveland Clinic are the parties to the 1996 definitive agreement. The city is not a party to the definitive agreement.
There is a widespread perception that LHA’s operational, maintenance and other obligations associated with Lakewood Hospital under the lease are passed through to the Cleveland Clinic in the definitive agreement. This is not the case. While the Cleveland Clinic does have some obligations under the definitive agreement, affirmative requirements to operate Lakewood Hospital for the lease term (or any term) or provide specific services at Lakewood Hospital are not among them. The party with those affirmative obligations is LHA, not the Cleveland Clinic, pursuant to the terms of the lease.
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