Chicago’s Mercy Hospital files for bankruptcy
Chicago’s Mercy Hospital & Medical Center filed for bankruptcy on Feb. 10, amid its closure plan that has been challenged in the community.
The Chapter 11 plan includes shutting down inpatient intensive care services, Mercy’s owner Trinity Health, based in Livonia, Mich., said in a bankruptcy filing.
Mercy said he plans to cease operations of all departments except basic emergency services on May 31.
“There were many steps leading up to the difficult decision to file for Chapter 11,” Trinity said.
In a news release announcing the bankruptcy, Mercy said it was losing staff and “suffering mounting financial losses” that were testing its ability to provide safe patient care.
Mercy said its losses averaged about $5 million per month and reached $30.2 million for the first six months of fiscal 2021. In addition, the hospital accumulated debt of over $303.2 million over the past seven years, and the hospital needs over $100. million in upgrades and modernizations.
The Chapter 11 bankruptcy filing comes just weeks after the Illinois Health Facilities and Services Review Board rejected Trinity’s plan to build an outpatient care center in the neighborhood where it is closing. the 170 year old inpatient hospital. The same council unanimously rejected Trinity’s plan to close the hospital in December.
The review board’s December vote came after months of protests from doctors, health advocates and community organizers, who say closing the hospital would create a health care desert. in the south end of Chicago.
The state review board has a meeting to discuss the shutdown on March 16.