Insight Chicago, which is affiliated with a Flint, Mich.-based biomedical technology company, offered to purchase the hospital for $1 earlier this month.
Insight Chicago promised the board it will continue to operate Mercy Hospital as a full-service community acute care facility with an emergency department, intensive care unit, rehabilitation center, stroke programs, behavioral health assistance, an obstetrics unit and inpatient beds.
Despite the approval from the state, Insight and Mercy Hospital still need to finalize the deal. If a deal isn’t reached, Mercy Hospital could close by May 31.
On Feb. 10, Mercy filed for bankruptcy protection, citing mounting financial losses and losses of staff that challenged its ability to provide safe patient care. The hospital’s owner, Livonia, Mich.-based Trinity Health, said it would wind down acute care services in May as part of the bankruptcy filing.
According to a regulatory filing, if the deal is approved, Mercy Hospital would seek permission from the bankruptcy court to dismiss the Chapter 11 bankruptcy proceedings and transition the facility to Insight Chicago.
Insight Chicago said in its application that it doesn’t plan to add or cut services at Mercy Hospital, but it would make changes after talking to community stakeholders. It also plans to change the hospital’s name and to stop running the hospital as a Catholic facility.
The ownership change to Insight Chicago has drawn mixed reactions. Some officials say the deal would keep the hospital open, while some activists argue that more time should be given to encourage local buyers to step up or have more time to vet the buyer.
More articles on healthcare industry transactions:
Insight Chicago would buy Mercy Hospital for $1, change its name
OSF HealthCare to acquire majority stake in Kindred hospital, rename it
US settles antitrust case against Geisinger, Evangelical
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
