Mercy Hospital Buyer Agrees To Keep Chicago Facility Open
(Bloomberg) -- The buyer of Mercy Hospital and Medical Center agreed to operate a full-service community hospital through at least 2029 and to restore services cut after the Chicago facility filed for bankruptcy in February.
The agreement addresses community leaders’ concerns that Insight, a Michigan-based biomedical company, would close the hospital, or pare down its operations, instead of keeping it as a comprehensive facility that treats some of Chicago’s poorest and sickest patients.
Insight said it’s committed to stabilizing Mercy’s finances and restoring the hospital as a teaching facility, along with periodic reporting on its progress, according to an emailed statement. It also agreed to community representation on its board, another demand from community, labor and political leaders.
Mercy filed for bankruptcy in February after the state denied a plan to shutter it. Owner Trinity Health Corp. agreed to sell the facility for $1 to Insight.
Insight will assume full control on June 1. Local leaders had proposed other solutions, including a sale to a partnership of Black physicians and a local hospital.
- The case is Mercy Hospital and Medical Center, 21-01805, U.S. Bankruptcy Court for the Northern District of Illinois (Eastern Division).
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