Presence Health, a 12-hospital system based in Chicago, said March 20 that it has put its Presence Our Lady of the Resurrection Medical Center on the city's northwest side up for sale. The system said that dramatic changes in the health care landscape have led to significant operating losses in recent years. Presence Health set a goal of having a signed letter of intent for the sale by early summer and a closing of the transaction by year's end.
Sandra Bruce, Presence Health's president and chief executive, said in a statement, "After an extensive review of more than a year, we've determined that the best approach to continue operating Presence (Our Lady of the Resurrection) as a full-service community hospital while also retaining the committed employees and physicians who work there is to find a buyer willing to provide the necessary investment and resources. We are dedicated to finding a way to best serve the health care needs of our entire northwest Chicago community."
The system said the 269-bed Presence Our Lady of the Resurrection had an operating loss of $12.5 million in 2012. Despite significant cost-cutting measures, the operating loss was $9.8 million for 2013 and the system said losses could double for 2014. According to system leadership, the losses are being driven in large part by industry changes as the delivery of health care becomes less hospital-centric and more community-based, with a focus on preventing and managing chronic health conditions.
The sale will include the 58-year-old hospital, a child care center, an office building, parking garage, and five residential homes currently under lease, said Tabrina Davis, system leader for corporate communications and public relations. She said the age of the existing hospital was not a factor in pursuing the sale. She added that facility upgrades in recent years included a "new cath lab, the installation of Epic (electronic medical record system) and renovations to the emergency department main hospital lobby and the parking garage sky bridge."
Any acquisition will be subject to regulatory approval. System leaders would prefer a sale to another Catholic or nonprofit hospital system, Davis said. However, prospective buyers will be evaluated to identify who will best serve community needs, including a commitment to keeping the hospital as a general acute care facility and to retaining employees, Davis said.
Bruce said in her statement that planning and negotiations will be guided by sensitivity to the impact a sale will have on employees, residents of northwest Chicago and community supporters. "As we pursue a buyer for Presence (Our Lady of the Resurrection), our top priority will continue to be taking care of our patients and their families as well as our valued employees. Any final decision will be guided by our dedication to upholding the best interest of the community and patients we are privileged to serve."
Presence Health, the largest Catholic health system based in Illinois, was created in November 2011 through the merger of Provena Health and Resurrection Health Care. The nonprofit system said it has more than 150 sites of care, including the 12 hospitals. Presence Health has 22,000 employees, 4,000 medical professionals and a revenue base of nearly $3 billion.
Copyright © 2014 by the Catholic Health Association
of the United States
For reprint permission, contact Betty Crosby
or call (314) 253-3477.