Mercy Hospital, Chicago’s oldest, files for bankruptcy
CHICAGO (AP) — Chicago’s oldest hospital has filed for Chapter 11 bankruptcy ahead of a planned May 3 1 closure.
Mercy Hospital and Medical Center’s filing in U.S. Bankruptcy Court for the Northern District of Illinois follows a state denial of an application from Mercy’s owner, Trinity Health, to open an outpatient care center. The decision by the Illinois Health Facilities and Services Review Board came after its December vote against Trinity’s application to close the hospital.
“The quality of care at Mercy is an increasing concern as physicians and other colleagues have left Mercy and operating losses have accelerated to $7 million per month.” David Southwell, chair of Trinity Health’s board, said in a document in the filing.
The filing includes potential outcomes that include sale of the health system or its assets, a reorganization or liquidation.
Mercy Hospital has operated in Chicago since 1852 and opened in its current South Side location in 1968. It was the site of a deadly shooting in November 2018.