Mercy Hospital and Medical Center of Chicago has filed for bankruptcy after generating $30 million in losses since July 2020.
The Chicago-based, 412-bed hospital that is owned by Trinity Health announced Wednesday that it aims to discontinue inpatient acute care services at the hospital and wind down full-service care. The decision comes a few months after state regulators rejected a proposal to close the hospital down.
The filing comes after an “orderly wind-down plan that has been in place for several months,” Trinity announced in a release on Wednesday. “There have been many steps that preceded the difficult decision to file for Chapter 11.”
Mercy generated $30.2 million in losses since July 2020, averaging $5 million in losses every month. Trinity estimated that it could cost between $90 to $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.
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Mercy will still 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.
“Trinity ultimately developed the plan to open the Mercy Care Center after determining that Mercy Hospital & Medical Center was no longer sustainable,” according to a release back in November on the center.
But Illinois officials shot down that plan late last year over fears that it would harm access to the South Side of Chicago where Mercy is located.
The Illinois Health Facilities and Services Review Board voted 6-0 in December to reject the plan to close and become an urgent care center. The board wasn’t convinced the urgent care center would meet the needs of the community, according to a transcript of the meeting.