PRESENCE HEALTH SEEKS BUYER FOR PRESENCE OUR LADY OF THE RESURRECTION
Northwest Side Hospital Has Experienced Unsustainable Financial Losses, Decline in Admissions
Presence releases the following news release:
Presence Health announced today that it has decided to sell Presence Our Lady of the Resurrection Medical Center.
“After an extensive review of more than a year, we’ve determined that the best approach to continue operating Presence OLR 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,” said Sandra Bruce, President and CEO, Presence Health.
Similar to other hospitals in the region and across the country, Presence OLR has suffered significant operating losses with much of the loss driven by dramatic changes in the health care landscape. In 2012, Presence OLR suffered an operating loss of $12.5 million. In 2013, despite significant cost-cutting measures, the operating loss was $9.8 million and could double for 2014 based on current data. Much of this loss is driven by industry changes as the delivery of health care becomes less hospital-centric and more community-based focused on preventing and managing chronic health conditions.
Next week, Presence Health will issue an official Request for Proposal with the goal of a signed Letter of Intent for sale by early summer 2014 and a closing of the transaction by the end of the year. Any transaction would need approval by the Presence Health Board of Directors and regulatory agencies.
“Our negotiations and planning are being guided by a particular sensitivity to the impact on our employees, physicians, community supporters and the Northwest community residents,” Bruce said. “As we pursue a buyer for Presence OLR, 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.”
About Presence Health
Presence Health is the largest Catholic health system based in Illinois, created in November 2011 through the merger of Provena Health and Resurrection Health Care. With more than 150 sites of care, including 12 hospitals, Presence Health has 22,000 employees, 4,000 medical professionals and a revenue base of nearly $3 billion.