Shuttered Sacred Heart Hospital sold to Chicago group
BY MONIFA THOMAS Staff Reporter January 7, 2014 1:14PM
Updated: January 7, 2014 7:12PM
Sacred Heart Hospital, the West Side hospital that closed abruptly last year, has been sold to a group that describes itself as arranging educational services for local and foreign medical students.
APGME Corp. bought the building at 3240 W. Franklin for $250,000, said David McLauglin, a senior director with the Chicago office of the New York-based turnaround firm Alvarez & Marsal Holdings LLP. The firm had been trying to sell the hospital for several months before it was sold to APGME in December.
The president of APGME, Sameer Suhail, said the amount it actually paid “was much more than” $250,000 because of underlying fees. But he declined to disclose the actual price.
Suhail told Crain’s Chicago Business that APGME is “currently negotiating with construction companies” to bulldoze the hospital building. Suhail and Mane Eauleillai, the CEO of the APGME, would not confirm that.
“We’re looking at possibilities right now,” Eauleillai said, such as putting “some kind of medical institution . . . or a center dealing with healthcare.”
He added, “Whatever we do it’ll be good for the community and that area.”
The company is prepared to spend between $20 million and $30 million, Eauleillai said. Suhail said the company has offices in Chicago, Atlanta, Canada and overseas.
The former CEO and owner of the Sacred Heart Hospital, Edward Novak, 58, of Park Ridge, and four other doctors were charged in a kickback and health care fraud scheme in which unnecessary medical services were performed to collect fees from Medicare and Medicaid insured patients.
Six weeks later, in July 2012, the hospital was abruptly closed. The hospital also was stripped of its state license and filed for bankruptcy.
The turnaround firm identified 15 potential buyers, of which five expressed interest. Ultimately, however, “none of the potential purchasers were interested in purchasing or restarting the hospital,” the bankruptcy filing states, Crain’s reported.