Buyer sought for Our Lady of the Resurrection hospital
BY MONIFA THOMAS Staff Reporter March 20, 2014 2:18PM
Updated: March 20, 2014 5:54PM
Presence Health said Thursday it is selling Our Lady of the Resurrection Medical Center, citing financial issues at the hospital, including fewer patients and uncollectable charity care and bad debt.
Presence Health, which is the largest Catholic health system based in Illinois, said the 269-bed hospital, 5645 W. Addison, ended 2013 with an operating loss of $9.8 million. Operating losses at the Portage Park hospital are projected to be $15 million to $20 million for 2014 based on current data and trends, said Tabrina Davis, a spokeswoman for Presence.
Charity cases and bad debt account for more than 9 percent of potential revenue and can’t be collected, Davis said.
“After an extensive review of more than a year, we’ve determined that the best approach to continue operating Presence [Our Lady] 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,” Presence said in a statement.
Presence said it would prefer if the buyer is a Catholic health system and is a not-for-profit firm. Presence is also seeking a qualified buyer that will operate Our Lady as a general acute care facility and retain the hospital’s 900 employees.
More than half of the hospital’s inpatient revenue came from Medicare and the next highest percentage — 17 percent — came from Medicaid in 2011, according to the most recent hospital report to the Illinois Department of Public Health. Both Medicare and Medicaid typically pay less than private insurance. Outpatient, meanwhile, had 43.5 percent of the revenue coming from out of pocket and 27.2 from private insurance.
Presence Health will issue an official request for proposal next week 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, Presence said.