HealthSpan bought Kaiser Permanente's insurance and medical office operations in Northeast Ohio two years ago.
Since then the company has kept its lower-cost insurance offerings in the market and continued to operate 11 locations.
Dr. Nabil Chehade, president and market CEO for HealthSpan, says the announcement means Cleveland Heights and Parma urgent cares will be turned into MetroHealth emergency departments. But, he says, it's not necessarily bad news for his company.
"We strongly believe this is just another step retooling and refocusing what we do the best," Chehade says.
When asked about being in the red, Chehade says this is all part of improving operations.
HealthSpan's doctors will continue operating the medical offices in Parma and Cleveland Heights - just not the emergency departments. The company's efforts to retool include accepting patients from insurance companies outside of the former Kaiser plans.
HealthSpan Physicians, including the facilities, is part of Mercy Health. Separately, HealthSpan's insurance plans have struggled financially in Northeast Ohio. HealthSpan Integrated Care lost $53 million last year, and $46 million so far this year, according to state filings.