Franciscan Alliance is looking for another healthcare network to take over its two hospitals in the south suburbs of Chicago, as consolidation continues to sweep through the Chicago market.
The Mishawaka, Ind.-based health system has hired a consultant to explore options, such as a sale or joint venture agreement, for Franciscan St. James Health Olympia Fields and Franciscan St. James Health Chicago Heights, according to a news release issued today.
Combined, the two hospitals has more than $260 million in inpatient and outpatient revenue in 2011, Illinois public health records show. The institutions are the only Illinois locations for Franciscan, which operates 11 hospitals in Indiana.
The physician group related to the hospitals was split into two earlier this year in the wake of doctor defections in 2012.
Franciscan has invested $300 million in the two south suburban hospitals since 1994, but both have posted consistent financial losses, the release says.
“Joining a new organization provides an opportunity to ensure the long-term viability of essential services at Franciscan St. James Health for the Chicago Heights, Olympia Fields and surrounding communities,” Kevin Leahy, president and CEO of Franciscan Alliance, said in the release. “We are looking for an organization that can provide the capital investment and more extensive local network Franciscan St. James needs to prosper.”
The healthcare network recorded nearly $145 million in operating income in 2011, on revenue of $2.36 billion.
St. James Chicago Heights, with 312 beds, posted $129.3 million in combined inpatient and outpatient revenue in 2011, while St. James Olympia Fields, 164 beds, recorded about $130.9 million the same year, according to the Illinois Department of Public Health.
"Two south suburban hospitals up for sale" originally appeared in Crain's Chicago Business.
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