Major Chicago-Area Hospital to Remain Open Under New Ownership

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Hospital Review: Business and Legal Issues - Hot Topics

Major Chicago-Area Hospital to Remain Open Under New Ownership

Written by Rob Kurtz

Friday, 09 May 2008

St. Francis Hospital & Health Center in Blue Island, Ill., will remain open and change from a non-profit to a for-profit hospital after a transfer of ownership, according to the hospital.

The hospital will take on the new name of MetroSouth Medical Center after ownership is transferred from St. Louis-based SSM Health Care to an entity known as MSMC Investors and its affiliate, Transition Healthcare.

The announcement ends speculation that the hospital would close due to mounting financial losses and failed efforts to find a buyer, as reported earlier in a Becker’s ASC Review story.

Transition Healthcare and its financial backer, Falcon Investors, created MSMC as the holding company for the hospital and related health care assets. Falcon Investors is the majority owner of MSMC Investors and Transition holds a minority interest. Transition will be responsible for managing the hospital on a day to day basis.

The CEO of Transition Healthcare, Arnold Kimmel, will assume the role of CEO for MetroSouth Medical Center.

“We know how important it is to residents of Blue Island and the surrounding communities to keep the hospital operating for the long term and we intend to do just that,” Mr. Kimmel said, according to reports.