The uneven track record of hospital turnaround operators 

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Two closed Illinois hospitals, Chicago-based Weiss Memorial Hospital and Oak Park, Ill.-based West Suburban Medical Center, are headed for new ownership, and the operator taking them over brings a mixed track record.

In December 2022, Chicago-based Resilience Healthcare purchased Weiss Memorial and West Suburban from El Segundo, Calif.-based Pipeline Health System as part of its bankruptcy proceedings. Weiss Memorial then closed Aug. 8, 2025, and West Suburban shuttered June 11 after its last functional elevator broke down. 

Flint, Mich.-based Insight Health System shared in mid-September that it was taking over the two facilities after the hospitals’ real estate owner, Ramco Healthcare Holdings, reached a settlement agreement with their existing operator, Resilience Healthcare. Under the deal, Ramco would buy out Resilience, take over the hospitals and sell them to Insight. 

Insight Health System currently comprises four hospitals: Insight Hospital and Medical Center Chicago; Insight Surgical Hospital, a specialty surgical hospital in Warren, Mich.; Insight Hospital and Medical Center Coldwater (Mich.), a general acute-care rural hospital; and Insight Psychiatric Hospital in Flint, which is licensed under Insight Surgical Hospital, a spokesperson for the health system confirmed with Becker’s.

Insight is still conducting due diligence and an operational assessment of West Suburban and Weiss Memorial, which covers financial and legal liabilities, assets, facility conditions, staffing, regulatory requirements and capital needed to support operations, Atif Bawahab, chief strategy officer at Insight Health System, said in a statement shared with Becker’s. It also covers implications of both hospitals’ existing licensing and Medicare certification status, including the termination of West Suburban’s Medicare participation on Sept. 30.

Mr. Bawahab said no final decision has been made on the hospitals’ ownership structure or which entity will ultimately acquire them. Insight’s preference, subject to legal, regulatory and financial feasibility, is to establish a separate nonprofit, tax-exempt organization with an independent governing board that has “meaningful community representation.” Under that structure, the organization would own both hospital operations and their underlying real estate. 

“Our track record has been shaped by the hospitals we have stepped in to serve,” Mr. Bawahab said. “These hospitals were in serious distress, and they served communities with a high proportion of Medicaid, uninsured, and underinsured patients.”

In 2021, Insight agreed to purchase Mercy Hospital & Medical Center for $1. Insight agreed to run the hospital, which filed for bankruptcy Feb. 10, 2021, through at least 2029 and planned to invest $50 million in the facility. By February 2022, the emergency room at Mercy Hospital, renamed Insight Hospital and Medical Center Chicago, began receiving ambulances for the first time in nearly a year. 

“Since taking over [Insight Hospital and Medical Center Chicago], we have made substantial year-over-year financial improvements,” Mr. Bawahab said. “That work required significant upfront investment, and the return is measured not only in financial terms but in preserved access to emergency and other essential care.”

Insight’s experience with hospitals in both New Jersey and Ohio went differently than in Illinois. 

The health system stepped in to run operations and stabilize finances for Jersey City, N.J.-based CarePoint Health in March 2024. At the time, CarePoint ran three safety-net hospitals: Hoboken University Medical Center and Christ Hospital in Jersey City, two nonprofit facilities, and Bayonne Medical Center, a for-profit entity. 

In October 2024, CarePoint Health and Secaucus, N.J.-based Hudson Regional Hospital moved forward with an affiliation under management services organization Hudson Regional Health. The four-hospital system was created in late May 2025 as part of the final step in CarePoint Health’s bankruptcy exit. 

In Ohio, Insight took over Trumbull Regional Medical Center and Hillside Rehabilitation 

Hospital, both in Warren, Ohio, from bankrupt Dallas-based Steward Health Care in November 2024. Both hospitals were initially set to close on or around Sept. 20, 2024, along with six satellite facilities, prior to Insight taking over.

Months later, the renamed Insight Hospital and Medical Center Trumbull stopped admitting nonemergent patients in early March 2025, with both the Trumbull and Hillside Rehabilitation facilities pausing all inpatient, outpatient and emergency room services on March 27, 2025. 

While Insight worked to reopen the facilities, only the Trumbull facility reopened briefly in October 2025 before suspending operations again in late November 2025. Insight then agreed to surrender its license for the Trumbull facility in January 2026. 

Mr. Bawahab said Insight encountered “substantial challenges” at Trumbull Regional involving transition services, vendor contracts, access to essential operational and clinical data and Medicaid billing. He said that despite the system’s efforts, Insight could not sustain operations at the hospital under those circumstances and that the system recognizes the impact the outcome had on the community.

“These experiences have taught us that restoring a distressed hospital is not simply a matter of putting an operator in place,” he said. “Success requires a realistic assessment of a hospital’s needs, access to critical systems and data, workable vendor and real estate arrangements, adequate capital, and a sustainable long-term financial structure. We have also learned that financial sustainability, regulatory compliance, and patient safety are fundamental responsibilities. Where our processes have fallen short, we have worked to correct them and strengthen accountability.”

Mr. Bawahab said Insight is applying these lessons at West Suburban and Weiss Memorial. Instead of making a commitment and solving problems later, the health system is conducting a structured assessment to identify facility needs, capital requirements, liabilities and regulatory barriers before making a final decision.

“We cannot guarantee that either hospital can be restored, and we will not make commitments the facts do not support,” he said. “But these communities deserve a serious, transparent effort to determine whether a viable path forward exists before the loss of these hospitals becomes irreversible.”

Tenor Health Foundation, a Pasadena, Calif.-based nonprofit founded in 2022, has also taken on several hospital turnarounds and has seen some success. 

“As a nonprofit, Tenor Health Foundation approaches hospital ownership as a long-term responsibility,” Radha Savitala, president and chairman of the board for the Tenor Health Foundation, said in a statement shared with Becker’s. “Our focus is on acquiring and stabilizing community hospitals that people depend on, preserving access to high-quality care, and helping those hospitals build a more sustainable future. What differentiates our model is that we reinvest our resources in our hospitals and communities, combining financial discipline with investments in operations and services that strengthen our patient offering.”

Tenor acquired Sharon (Pa.) Regional Hospital, a former Steward facility that closed in January 2025, and fully reopened the facility in May 2025. In late October 2026, Sharon Regional paused inpatient services, but kept its emergency department open after missing two pay cycles on Oct. 9 and Oct. 23.

Franklin, Tenn.-based Community Health Systems sold three Pennsylvania hospitals to Tenor on Feb. 1 for $33 million, plus a $15 million promissory note. The hospitals are Regional Hospital of Scranton (186 beds), Moses Taylor Hospital in Scranton (122 beds) and Wilkes-Barre General Hospital (369 beds).

CHS had tried to sell the hospitals to WoodBridge Healthcare in 2024 for $120 million, but the deal collapsed because WoodBridge could not satisfy the funding requirements. 

“Across our hospitals, we are making meaningful progress,” Ms. Savitala said. “Recent examples include investing $1.3 million in new echocardiogram units, opening a 340B and retail pharmacy at Moses Taylor, and expanding access to radiation oncology services. Our focus is on continuing to strengthen these hospitals for the communities that depend on them.”

Tenor was co-founded by Ms. Savitala, a healthcare attorney who advised hospital transactions at Ontario, Calif.-based Prime Healthcare for more than 10 years. She has helped position the organization as a newer model: a nonprofit turnaround operator that steps in where for-profit divestitures and bankruptcies have left gaps.  

“We’re very open to strategically partnering with other health systems, especially when it comes to service lines where collaboration can improve efficiency, cost or access,” Ms. Savitala told Becker’s in October 2025. “If another provider can deliver a particular service more effectively or at a lower cost for our community, we’re happy to partner.”

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