A month ago, officials at Vista Health Systems and Vista Medical Center East in Waukegan
spoke publicly about the purchase of millions of dollars in new equipment and the strides they were making in regaining lost patients.
But last week, Vista furloughed 69 non-medical personnel — 8.6% of its workforce — for the next six weeks.
A hospital with a large number of uninsured and underinsured patients, Vista CEO Kevin M.
Spiegel said financial stability is dependent on it becoming a safety-net facility and receiving emergency funding from the state. It is an ongoing process, he said.
“This will help to cut costs,” Spiegel said. “We have to begin somewhere. These are non-clinical
and ancillary personnel. We are trying to prioritize our spending. We don’t have enough revenue coming in to cover our costs.”
Vista continues to operate the only hospital in northeastern Lake County in Waukegan, and
navigate its way to financial stability through a variety of sources, though it does not receive the larger payments which come with a majority of fully insured patients.
When Los Angeles area-based American Healthcare Systems (AHS) acquired Vista 18 months
ago, the purchase came with existing debt which must be retired. Faisal Gill, AHS’s chief legal
officer, said it is an ongoing effort.
AHS paid for the $15 million in new equipment. Gill said AHS advanced cash to Vista to meet
payroll on some occasions, but the Jan. 9 furloughs were nevertheless necessary.
“We held off as long as we could,” he said. “We have to have the right balance.”
State Sen. Adriane Johnson, D-Buffalo Grove, has taken a keen interest in Vista’s situation since
rumbles arose in the community a year ago about the hospital’s financial condition. She said she is
concerned about the furloughed workers, and remains committed to the hospital’s stability.
“It reminds me Vista is still struggling,” she said. “I feel for the employees who were furloughed. It’s supposed to be temporary, but they still have to pay their bills.”
As she was from the time problems started to surface and became public a year ago, Johnson said
she is committed to a hospital in Waukegan serving the people in that city, North Chicago and
Zion. Her loyalty is to the community, not necessarily a particular company, she said.
“Healthcare is a human right,” Johnson said. “I am committed to having a hospital in Waukegan.
It is essential to our community.”
Gill said AHS shares the commitment to operating a hospital in Waukegan. The company intends to make it financially stable but some hard decisions may have to be made along the way like the recent furloughs.
“We’re not going anywhere,” he said. “We’re not going to close the hospital.”
Turning Vista Medical Center East into a safety-net hospital is an ongoing effort. Spiegel said he continues to
meet with appropriate people to move the project along. Waukegan is an ideal area for the
designation, he said. It helps pay for uninsured and underinsured patients.
The closest ones to Waukegan are in downtown Chicago, and on the city’s south and west sides.
“Waukegan is one of the most economically challenged areas in the state,” Spiegel said. “Many
of our patients are uninsured, underinsured and undocumented. We treat them. We don’t turn
anyone away.”
Though 69 people were furloughed last week, Spiegel said Vista is hiring in the clinical areas,
which directly impacts the delivery of healthcare. He said 12 full-time nurses started work Monday,
and 10 more are scheduled to begin next Monday.
