Mercy Hospital, a historic medical center on the Near South Side, plans to close, CEO Carol Schneider announced in a memo to employees today.
Mercy also plans to close its outpatient clinics, and build one new one that could treat more than 50,000 patients a year.
“We have worked hard over the last several years to put Mercy Hospital on a financially sustainable path while continuing to serve the healthcare needs of our community,” Schneider wrote in the memo. “But with the state’s elected officials declining to support our South Side Transformation plans in May, we have made the difficult decision to close the hospital sometime in 2021.”
Mercy was one of four financially-struggling hospitals that aimed to merge into one giant health system. The goal was to build one to two new modern hospitals, and three to six outpatient centers that would ultimately replace the four existing aging hospitals. They also included South Shore, St. Bernard and Advocate Trinity hospitals. The price tag was steep — an estimated $1.1 billion. The four hospitals, dubbed the South Side Coalition, asked Illinois lawmakers to cover $520 million of the tab over five years. They said no.
Addressing health disparities was one of the reasons behind the proposed mega merger with three other hospitals. Mercy said patients in the communities surrounding the hospital disproportionately suffer from chronic conditions.
And most of the patients Mercy treats are those at risk of getting COVID-19. The majority of patients are Black, low-income and elderly, state records show. Black and Latino Chicagoans have been dying most of the new coronavirus.
“The COVID-19 pandemic has further highlighted these disparities,” Mercy said in a separate statement. In her memo, Schneider said Mercy hasn’t been financially stable for several reasons: an uptick in demand for outpatient care that reimburses Mercy less than for more expensive hospital care; aging facilities; and ongoing financial losses.
Mercy loses about $4 million a month. The hospital needs at least $100 million in capital investments in the next five years “to maintain a safe and sustainable acute care environment,” Mercy said in the statement.
“Ultimately, change needs to happen on the south side of Chicago in delivering health care and Mercy can’t do it alone,” the statement said.
Mercy has a significant history in Chicago. The medical center is more than 150 years old. It’s where former Mayor Richard M. Daley was born.
The hospital has nearly 1,700 employees. Mercy said it plans to close between February and May next year. Due to a law change, state regulators do not have the authority to stop hospital closures.
Kristen Schorsch covers public health on WBEZ’s government and politics team. Follow her @kschorsch.
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July 29, 2020 at 10:41PM
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Mercy Hospital, A Historic Near South Side Medical Center, Plans To Close After Merger Plan Fails - WBEZ
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