$375 Million Sale Of 11 Ascension Hospitals Approved By Illinois Health Regulators

Find out what's happening in Evanstonwith free, real-time updates from Patch.

Polly Davenport, president and CEO of Ascension Illinois, expressed confidence in Prime’s ability to continue the system’s mission.

“Prime Healthcare’s mission and commitment to clinical excellence and health equity will carry on this legacy, ensuring that the greater Chicago area has sustainable, quality healthcare access long into the future,” Davenport said in a statement after the deal was initially announced.

Prime Healthcare, which operates 44 hospitals across 14 states, touts its history of taking over struggling healthcare facilities and turning them around.

Prime representatives also said the company will not adopt a more restrictive charity care policy for at least two years following the sale to address concerns from regulators and community stakeholders about access to health care for uninsured and low-income patients. They also agreed to maintain current services for at least three years.

While company officials pledged to keep all hospitals operational for at least three years, Ascension Saint Elizabeth Hospital in Humboldt Park remains slated for closure.

Click Here: canterbury-bankstown bulldogs jersey

The 80-bed hospital, with low patient volume in recent years, will be repurposed into a facility better aligned with community needs, officials said. State regulators are expected to review the closure plan during their March 2025 meeting.

Federal authorities have secured major settlements from Prime in recent years. In 2018, the firm agreed to pay the feds $65 million to resolve allegations of false Medicare claims, with its founder and CEO Dr. Prem Reddy personally responsible for paying $3.25 million of it. And in 2021, company officials paid $37.5 million to settle accusations that they violated the False Claims Act and anti-kickback laws.

Earlier this year, Prime completed a $1.5 billion bond financing to fund its acquisitions and infrastructure investments. Moody’s recently raised the company’s credit outlook to “Positive,” citing its track record of operational success and financial stability.

“Prime has saved and transformed over 40 hospitals across the country,” Dr. Sunny Bhatia, president and chief medical officer, said in a statement in September, “and our strong operations and financial position enable us to invest and improve facilities that align with our mission to turn around hospitals, provide clinically excellent care, and expand access for all.”

As part of the deal, Ascension and Prime committed to finish several modernization projects that have already begun at its Illinois facilities.

They include: $107.2 million in upgrades at Ascension Alexian Brothers in Elk Grove Village to be complete in 2025, the $103.8 million modernization of emergency and surgical departments at Ascension Resurrection in Chicago due for completion by 2027 and $23.2 million in emergency room upgrades at Ascension Saint Alexius in Hoffman Estates.

For Ascension, the sale represents part of a broader effort to restructure its operations and focus on outpatient care. The Catholic nonprofit health system has reported $4 billion in operational losses over the past three fiscal years.

As part of its restructuring, the system has offloaded dozens of hospitals across the country, including a recent deal in Michigan and the sale of three hospitals to MyMichigan Health earlier this year.

According to the Illinois Health Facilities and Services Review Board, the agreed-upon sales prices for each of the hospitals, which had not been previously reported, are as follows:

With approval from the Illinois regulatory board in hand, the transaction now awaits final clearance from the Archdiocese of Chicago. The deal is expected to close in the first quarter of 2025.

Earlier: Ascension To Sell St. Francis Hospital In Evanston To Prime Healthcare

Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.