Columbia/HCA Healthcare Corp. has decided to sell Columbia Michael Reese Hospital and Medical Center, according to a letter the hospital’s president sent to the medical staff and employees Friday.
The letter from F. Scott Winslow is the first indication that Columbia/HCA, the nation’s largest for-profit hospital company, will sell Michael Reese separately and not as part of a larger group of hospitals it plans to divest.
The letter also says that Columbia/HCA will package Michael Reese with Grant Hospital and seek “a single buyer for both hospitals.”
“Personally, I believe Michael Reese will be best able to serve the Chicago community outside the umbrella of Columbia/HCA,” Winslow wrote. “We have already received expressions of interest from a number of prospective buyers, including several physician groups,” he went on.
The hospital “will be evaluating a number of potential new owners over the next several weeks,” he said.
More Top Picks Best Aac Devices For Nonverbal Kids
Winslow’s letter said that the public announcement of the decision to sell would be made Saturday.
The move substantially increases the likelihood that Michael Reese and Grant will be sold to a Chicago-based healthcare organization. The University of Chicago Health System has expressed strong interest in the fate of Michael Reese, and a group of physicians at the hospital has confirmed it is putting together a proposal to buy the hospital.
Several weeks ago, when Columbia/HCA announced a major restructuring, it appeared that its eight Chicago hospitals, including Michael Reese and Grant, would become part of a new, yet-to-be formed, publicly held company. Now, it appears they won’t.
The announcement by the president of Michael Reese is sure to set off a flurry of activity in Chicago’s $11 billion hospital market, as various groups consider a bid for the facilities.
Michael Reese and Grant have been among the most financially challenged of Columbia/HCA’s eight Chicago hospitals, and both hospitals face significant business challenges.
Columbia/HCA has been under investigation for months by federal and state authorities for billing irregularities and other questionable activities. And while the parent company was under investigation, management at Michael Reese has been in heated labor negotiations with Service Employees International Union Local 73.
The union, which represents 400 employees in service, maintenance and business office jobs, has been battling for severance pay, job security and wage increases since its three-year contract expired on Nov. 18.