‘Enough is enough’: Waukegan mayor calls for sale of Vista Medical Center East

Amid new reports of payroll delays at Vista Medical Center East and the Illinois Department of Public Health no longer allowing ambulances to transport patients there, Waukegan Mayor Sam Cunningham said he has run out of patience with Vista owner American Healthcare Systems.

Cunningham wants hospital healthcare workers at Vista not to have to worry about the financial stability of AHS as they care for patients from the Waukegan area. He believes a new owner for the hospital is the best solution.

“Enough is enough,” Cunningham said in an email. “It is time for American Healthcare Systems to step aside, transition away from Vista Medical Center East and sell the hospital to a responsible healthcare operator. The community deserves better.”

Cunningham called on AHS to sell Vista Friday in Waukegan after learning about possible delays in payroll for the second time in two months, and the removal of ambulance services three weeks after the IDPH removed Vista’s Level II Trauma Center designation.

As Vista deals with meeting payroll, takes steps to receive patients by ambulance and become a trauma center again, state Sen. Adriane Johnson, a Buffalo Grove Democrat, intends to push for legislation to aid hospitals like Vista during the Illinois General Assembly’s veto session on Nov. 17.

When the Waukegan Fire Department learned of the mandatory emergency medical service bypass issued by the IDPH, it communicated on social media and through other means to let the community know it adjusted its “protocols” for transporting patients immediately.

“All emergency transport ambulances will route patients to the nearest available alternative hospital,” the department said. “The leadership of the (fire department) is working closely with regional health authorities and city leadership to monitor this situation and keep the community informed.”

Hospital employees were informed Friday morning that payroll would be delayed. An anonymous source with knowledge of the situation said some workers were issued checks Friday and the rest would receive a deposit in their bank account Monday. As of noon Monday, there had been no such notification.

When Cunningham learned of the payroll delay, he said it is “unacceptable” for AHS’s “corporate mismanagement” to create financial uncertainty for individuals in their employ who care for the people of the community.

“Healthcare workers should be focused entirely on saving lives and healing patients, not worrying about whether their hard-earned paychecks will clear, bounce, or be delayed,” Cunningham said. “This ongoing breakdown is a direct threat to the public health, safety, and well-being of the region.”

When the IDPH learned of the delayed payroll at Vista, a spokesperson said in an email it was “completely unacceptable and irresponsible — for hardworking physicians, nurses, employees, and most critically, patients.”

“Their lack of communication, transparency, and responsible financial management and contingency planning is extremely concerning,” the spokesperson said. “The IDPH’s highest immediate priority is the health and safety of the patients and has been working and communicating with hospital administrative leaders in this regard.”

Johnson has continually said Waukegan must have a hospital, as Vista is the only general hospital in northeastern Illinois, an area with more than 200,000 residents. She has also regularly said AHS does not need to be the owner.

“It is our goal to ensure that we have a hospital in Waukegan that provides quality care on par with the surrounding hospitals,” Johnson said at a town hall meeting on Oct. 23. “To realize this goal, it is imperative that the state work toward providing adequate funding to safety-net hospitals.”

While Vista is not designated a safety-net hospital by the state, Johnson said, “for all intents and purposes” it is one. Vista “provides comprehensive healthcare to individuals regardless of their financial status, insurance coverage, or ability to pay.”

When the state legislature’s veto session starts next week, Johnson said she plans to introduce and push for passage of legislation which will allow a 10-year extension on the taxes for safety-net hospitals to help them develop a more stable financial footing, and another bill to allow more freestanding emergency centers.

“(It spreads) payment over a longer period of time to assist with stabilizing these hospitals,” Johnson said. “It would ensure that if there are hospital closures in underserved areas, there is a solution to addressing emergency care,” she added, referring to the emergency centers.”

Rosaland Community Hospital, a safety net hospital on Chicago’s South Side, filed for a reorganization under Chapter 11 of U.S. bankruptcy laws Wednesday in Chicago. The move will allow it to restructure its debt while continuing to operate normally.

Like Vista, Roseland is concerned about Medicaid cuts contained in the “Big Beautiful Bill” passed by the U.S. Congress and signed by President Donald Trump starting after the first of the year. Safety net hospitals are historically underfunded.

Ann Lawrence, AHS’s chief legal officer, said at a town hall held by Johnson and state Rep. Rita Mayfield, a Gurnee Democrat, she would not rule out a Chapter 11 reorganization.

Interim Vista CEO Kevin Spiegel could not be reached for comment.

Chicago Tribune reporter Lisa Schencker contributed to this story.