Critics of the way American Healthcare Systems (AHS) is operating Vista Medical Center East in Waukegan and those with a more neutral view share one belief — a hospital in the city is a necessity.
“Having a strong, reliable hospital right here in Waukegan is not a luxury; it is a lifeline,” Ald. Lynn Florial, 8th Ward, said in reading a statement from Mayor Sam Cunningham. “Vista Medical Center East should be a cornerstone of stability.”
When AHS acquired Vista Health Systems from Quorum Health in July of 2023, it assumed its predecessor’s debts. It hoped for financial stability by the end of 2023, but among its current outstanding obligations are more than $2.3 million in unpaid property taxes and water bills.
Community members are looking for answers to ensure the hospital can stay afloat, whether in the hands of AHS or someone else who could operate it as a not-for-profit medical center.
AHS is a privately held Los Angeles area-based corporation that operates hospitals for profit.
More than 70 people attended a town hall moderated by Lake County Board Chair Sandy Hart on Wednesday at the College of Lake County’s Lakeshore campus in Waukegan, where healthcare experts and others offered ideas on how to keep Vista Medical Center East operating.
“What we do know is there is a problem,” Hart said. “Vista was invited to participate in this town hall. They declined. We would like to hear what they have to say about the future. The community wants answers.”
Alarm bells first sounded nearly two years ago when members of Vista’s advisory board were not getting answers to questions about doctors leaving the hospital because they were not being paid. It temporarily lost its designation as a Level II trauma center, and employees were furloughed.
More recently, Vista eliminated its obstetrical and neonatal services effective in October, and the following month, AHS failed to cure its property tax delinquency for the second consecutive year. The tax buyer could start the process to take title to the real estate this summer.
Though Vista did not send a representative to the town hall, Deanna Cruz, the hospital’s community engagement and marketing director, said in an email Thursday that it is working on a plan to make the hospital financially sustainable. She was not specific.
“Vista is implementing a multi-phase operational and financial stabilization plan focused on strengthening core services, improving operational efficiencies, and ensuring sustainable access to care for northern Lake County,” Cruz said in the email. “Break-even projections remain part of internal planning, and no public timeline is being released at this time.”
Lake County Coroner Jennifer Banek — who is also a nurse anesthetist — was one of the presenters at the town hall. She talked about the differences between a for-profit hospital like Vista and not-for-profit medical centers like the others in Lake County.
Banek said for-profit hospitals like Vista operate under a different set of regulations than not-for-profit medical centers like Advocate Condell Medical Center, Northwestern Medicine Lake Forest Hospital and Endeavor Highland Park Hospital.
Approximately 65% of hospitals in Illinois are not-for-profit operations. Banek said 20% are for-profit and 15% are government-operated. Not-for-profits are tax-exempt and responsible to the community rather than shareholders and a corporate board of directors.
“Vista Medical Center is the only for-profit hospital in Lake County,” Banek said. “All the others are not for profit. Not-for-profits offer a community benefit.”
Todd Johnson, a Waukegan resident, asked at the meeting if Vista has reached out to the Healthcare Foundation of Northern Lake County for assistance. The organization has $60 million that it can use to benefit healthcare in the area.
Cruz said Vista has had conversations with the foundation, but its corporate structure does not enable it to qualify for foundation grant funding. In a news release issued Thursday by Vista, it said it is in the process of balancing financial obligations and patient care. Patients come first.
“Redirecting critical resources away from patient care solely to address financial obligations would undermine our mission and compromise the stability of healthcare access throughout Northern Lake County,” Vista said in the release.
Hart and Banek suggested people remain engaged. Additional town halls may help spur change.
“We don’t have definite answers,” Banek said. “Community action and these discussions are a first step.”
