Resurrection Health Care
Contact: Brian Crawford
Vanguard Health Systems, Inc.
Contact: Suzanne Towry
FOR IMMEDIATE RELEASE
Resurrection Health Care and Vanguard Health Systems Sign Letter of Intent to Transfer Ownership of Westlake Hospital and West Suburban Medical Center
Joint Media Statement
CHICAGO-- Resurrection Health Care, Chicago, and Vanguard Health Systems, Nashville TN, have entered into a non-binding letter of intent to transfer ownership of Westlake Hospital and West Suburban Medical Center to affiliates of Vanguard (collectively “Vanguard”). Vanguard will also acquire Resurrection’s outpatient facilities located at 7411 Lake Street in River Forest. The West Suburban College of Nursing, which is located on the campus of West Suburban Medical Center, will continue to operate as part of Resurrection Health Care.
Sister Patricia Ann Koschalke, CSFN, Chair of the Resurrection Health Care Sponsorship Board, said, “The Resurrection Health Care Board of Directors and Sponsors wish to stress that our decisions have been guided by a sensitivity to the impact this change will have on our employees, physicians, community supporters and the public at large. We are pleased that Vanguard shares a similar mission and philosophy of caring, so that the good work of these institutions can continue to grow.”
“We are pleased that Vanguard will continue to serve these communities,” said Sandra Bruce, Resurrection Health Care President and CEO. “Vanguard’s corporate structure provides access to capital that is far greater than what Resurrection would be able to invest in today’s difficult economy.”
Under terms of the proposed transaction, Vanguard will continue to operate Westlake Hospital and West Suburban Medical Center as acute care facilities under their existing names, maintain all graduate medical education programs and establish governance structures that ensure continued local input on community services provided by the hospitals. Additionally, Vanguard will assure that each Hospital provides at least the same level of charity care discounts and services to Medicaid patients as well as continue the existing policies on indigent and charity care. The hospitals will continue to follow Ethical and Religious Directives for Catholic Health Care Services. The Archdiocese of Chicago has been fully informed of the agreement.
“Vanguard has always focused on making long-term commitments to the communities we serve. We have provided care in the Chicago area for the last decade and are excited to expand our ability to serve communities in the western suburbs,” said Charlie Martin, Chairman and CEO of Vanguard. “Through MacNeal Hospital we have become familiar with communities served by West Suburban and Westlake, and look forward to working with Resurrection to build upon their many years of commitment at West Suburban and Westlake.”
In 2009, Vanguard provided over $90 million in charity care and over $300 million of uncompensated care at its 15 facilities nationwide. In addition, over the last five years the company has funded capital expenditures of over $925 million and increased its workforce by approximately 5,000 employees across its respective hospitals. Vanguard has also invested millions of dollars in a nurse training and accreditation academy.
Resurrection Health Care has invested more than $91 million in the two hospitals since 2004. Westlake Hospital joined the Resurrection system in 1998. West Suburban followed six years later in 2004.
Hospital systems in the Chicago area and nationwide have been affected by financial pressures caused by the weakened economy and the increasing cost of operations. Resurrection Health Care and its facilities have felt these pressures, but especially at West Suburban Medical Center and Westlake Hospital. Resurrection has been exploring strategic options that would ensure a continued stable future for the two hospitals, their employees and physicians, and the communities they serve.
Resurrection considered redesigning services offered at the hospitals or using them for other community purposes, but these options were deemed insufficient to assure continuity of care and employment opportunities in these communities. For the same reasons, closure of the hospitals was considered an undesirable option.
Vanguard Health Systems operates 15 hospitals in Arizona, Illinois, Massachusetts and Texas, including MacNeal Hospital in Berwyn, and Weiss Memorial Hospital in Chicago.
Under the Sponsorship of the Sisters of the Holy Family of Nazareth and the Sisters of the Resurrection, Resurrection Health Care continues to provide an extensive network of health care services to many Chicagoland communities. In addition to six other hospitals, our healing ministry includes seven nursing homes, four retirement communities, home health services, behavioral health programs and numerous outpatient services.