Company offers $23 million for Maryville hospital in Des Plaines
A New York-based for-profit behavioral health care firm is offering $23 million to purchase the Maryville Behavioral Health Hospital in Des Plaines.
The firm, 2014 Health LLC, is financed by US HealthVest, LLC, which has taken over struggling psychiatric hospitals nationwide. The company is the brainchild of Richard Kresch, a child psychiatrist by training.
"Maryville (hospital) is kind of an interesting place in that it seems to have a lot of potential, but I think the sisters ran it in a manner sort of true to their mission, and as such there just wasn't sufficient volume to support a hospital," Kresch said.
Maryville officials say the facility, located at 555 Wilson Lane, lost $6 million in operations last fiscal year and $4 million the year before. They announced their intentions to close the hospital in March, before 2014 Health officials signed a letter of intent to purchase the facility last month.
The deal is contingent on approval by the Illinois Attorney General's office since ownership of the hospital would transfer from a not-for-profit to a for-profit. The arrangement also requires the OK of the Illinois Health Facilities and Services Review Board, which could consider a change of ownership application as soon as Aug. 27.
A closing of the sale is scheduled for Sept. 30.
The name would change to Chicago Behavioral Hospital.
Kresch said there "hopefully would be a seamless transfer" so that any patients who remain at the hospital would stay. As of Friday, less than 10 patients remained, according to Maryville spokesman John Gorman.
Kresch said his company is committed to continuing to treat mentally ill children and adolescents at the facility.
But to make the facility financially viable, the firm's plan centers on increasing the number of patients, which could mean expanding care to adults.
Kresch said there are no plans to increase the capacity of the facility above the current 125-bed number, though exact plans for the new operation are still being formulated as officials talk to community agencies, health care providers, and governmental agencies to "determine what types of services are needed in the community."
Though the facility has 125 licensed beds, there's never been more than 80 patients in the hospital at one time, officials have said.
Maryville bought the 93,000-square-foot facility, the former Forest Hospital, in 1999.
Kresch's company is projecting an operating loss of $2.4 million in the first year of ownership, but estimates net income of $421,000 in the second year and $3.2 million by the third year.