Troubled Chicago Hospital Files for Bankruptcy

February 17, 2021

A Chicago hospital located in an underserved area of the city that recently had attempted to close has suffered another financial setback. Illinois health regulators in December had denied Mercy Hospital and Medical Center’s bid to close its doors due to increased costs and lower utilization.

The hospital has filed for bankruptcy after generating $30 million in losses since July 2020, according to Fierce Healthcare. The Chicago-based, 412-bed hospital owned by Trinity Health aims to discontinue inpatient acute care services and wind down full-service care. The decision comes a few months after state regulators rejected a proposal to close the hospital down.

Mercy generated $30.2 million in losses since July 2020, averaging $5 million in losses every month. Trinity estimated it could cost $90 million and $115 million to restructure. The health system said it doesn’t believe that the ultimate outcome of the bankruptcy will “have a material adverse effect on the financial condition” of the system.

Mercy still will offer basic emergency treatment services, diagnostic imaging and other care coordination services. Trinity had hoped to transform the historical hospital into an urgent care and diagnostic services center, announcing plans back in November.

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