Presence Health has signed a letter of intent to sell
Our Lady of the Resurrection Medical Center to Community First Healthcare of Illinois.
Presence, a Chicago-based hospital network and the largest Catholic hospital chain in the state, also announced plans to sell a Des Plaines, Ill., nursing home and a retirement center in Niles. Their buyer is Skokie, Ill.-based Glen Health and Home Management, according to a statement today.
Financial terms were not disclosed. Presence hopes to close all the deals by the end of the year.
Presence, which has 12 hospitals, put Our Lady of the Resurrection on the market in March after saying financial losses there were unsustainable.
“We are pleased that Community First Healthcare and Glen Health and Home Management will continue to serve the respective acute care and senior care needs of these communities,” Presence CEO Sandra Bruce said in the statement. “Both organizations have expressed their desire to continue our commitment to serving the needs of these communities and are committed to retaining employees and maintaining existing charity care. As a Catholic health care system, these were all critical factors in our selection process.”
Glen Health and Home Management has signed a letter of intent to buy Presence Ballard Rehabilitation, the Des Plaines skilled nursing facility, and Presence St. Andrew Life Center, the Niles retirement facility.
The sales must be approved by state regulators to take effect.
In 2012, Our Lady of the Resurrection had a $12.5 million operating loss. That was followed in 2013 by a $9.8 million loss, which could double in 2014, Presence said in a statement in March.
For 2013, the Presence Health system swung to a $61 million operating loss on $2.62 billion in total revenue, according to financial information provided to bond holders.
Our Lady of the Resurrection, at 5645 W. Addison St., is the third-smallest hospital in Presence's system and had $111.7 million in 2013 revenue."Presence finds buyer for Our Lady of the Resurrection hospital" originally appeared on the website of Crain's Chicago Business.