Healthcare Business News

Michael Reese Hospital files for Chapter 11

Posted: September 29, 2008 - 6:15 pm ET

A 364-bed Chicago hospital that intends to close by the end of 2008 has filed for Chapter 11 bankruptcy protection.

Michael Reese Hospital and Medical Center owes $6.6 million to its landlord, Medline Industries of Mundelein, Ill., as well as $4.7 million to gas, electric and water utilities, $2.3 million to the 459-bed University of Illinois Medical Center at Chicago and more than $860,000 in county and state taxes, according to the list of top creditors filed in federal bankruptcy court in Chicago.

In June the hospital notified the Illinois Health Facilities Planning Board that it would close by year-end because of poor prospects of reversing years of losses. The hospital sits on 37 acres near the shores of Lake Michigan south of downtown, and Chicago Mayor Richard Daley has his eye on the land to be included in the city’s bid for the 2016 Olympics. Michael Reese is owned by for-profit Envision Hospital Corp., Scottsdale, Ariz. Lawyer Edward Green, a partner in Foley & Lardner who represents the hospital and Envision, did not return a call seeking comment on the bankruptcy filing. (For more on the rash of healthcare bankruptcies, please Bankruptcy bug hits hospitals.) -- by Gregg Blesch

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