Credit Crunch Prompts Sale of Lincoln Park Hospital

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Written by Stephanie Wasek

Friday, 10 October 2008

Citing the credit crisis and the resulting difficulty in securing financing, Lincoln Park Hospital is seeking a buyer, reports the Chicago Tribune.

Lincoln Park, located in one of Chicago's most affluent neighborhoods, "faces a variety of challenges," according to the Tribune:

• The Lincoln Park neighborhood has better-capitalized facilities such as Advocate Health Care's Illinois Masonic Medical Center just a few blocks to the north. Children's Memorial Hospital is around the block, and Northwestern Memorial Hospital is a 10-minute cab ride downtown.

• Many of its patients are insured by the state Medicaid health insurance program for the poor. Hospitals have complained that Illinois is slow to pay such claims, which can hurt cash flows.

• It lost $15 million on $163 million in annual revenue, according to the latest data available on the American Hospital Directory's Web site.

• It also needs to spend at least $7 million to update a part of the facility built in 1928.

If Lincoln Park cannot find a buyer or arrange financing, closure of the hospital may result. Read the full story here.