Financial Difficulties
In 1998, ownership was transferred from Columbia/HCA Healthcare Corporation to what is now known as Envision Hospital Corporation. At this time, the number of beds was reduced from 1,100 to 450 Beds, and the hospital began closing clinics and laying off employees.
Operating expenses for the aging facilities continued increasing, while the hospital itself operated at a loss for the last several years. Heating and physical plant expenditures were staggeringly high compared to newer and more modern facilities such as Mercy Catholic Hospital and Little Company Of Mary Hospital.
In the face of escalating financial challenges, the hospital abandoned their effort to return to profitability. Many buildings on the campus had fallen into disrepair, and some were already completely unused. In 2004, archived medical records were kept in unsorted piles on wooden pallets, in a gutted clinical research building on the campus. In mid 2007, the number of beds was reduced to 150. By this time, almost all of the clinics had closed and the medical research centers had closed.
On June 5, 2008, WLS-TV reported that the hospital filed with the State of Illinois a letter of intent to close by the end of 2008. And on September 28, 2008, the hospital filed for Chapter 11 bankruptcy protection. Healthcare Business News reported on September 29, 2008, that the hospital owed $6.6 million to its landlord (Medline Industries), $4.7 million to gas, electric, and water utilities, $2.3 million to the University of Illinois Medical Center, and more than $860,000 in county and state taxes. When the hospital closed patients were transferred to Mercy Medical Center And Hospital.
Read more about this topic: Michael Reese Hospital
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