A potential transfer of ownership of the property where Vista Medical Center East sits at the northeast corner of Sheridan Road and Glen Flora Avenue in Waukegan has been delayed nearly a month amid financial issues facing hospital owner American Healthcare Systems (AHS).
Since AHS purchased Vista more than three years ago, it has not paid property taxes, enabling First National Assets (FNA), a company that purchases delinquent property taxes as an investment, to acquire the unpaid 2023 taxes for $1.1 million.
As AHS failed to pay the delinquent real estate taxes, FNA took steps to ask the Lake County Court for a deed to the property. FNA was poised to ask the court for the deed as early as July 10.
Lake County Judge R. Christopher Dutton continued FNA’s request for a tax deed on Friday in Waukegan until 9 a.m. on Sept. 11 at the request of FNA attorney Gregory Reiter, at which time the court could give FNA title to the real estate.
Reiter gave no reason for his request to postpone either the Vista case or several others FNA had scheduled for a hearing Friday. When the case was in court for the first time on July 10, he said he was having discussions with AHS. There were no further discussions since.
“I heard from a lawyer for them,” Reiter said Friday, appearing in court virtually. “I’ve heard nothing since.”
AHS CEO Michael Sarian could not be reached for comment. He said in March he planned to sell four parcels of real estate on the south side of Glen Flora across from the hospital to cure the delinquent taxes. He could not be reached for comment after the July 10 hearing.
“We’re going to sell land we don’t need,” Sarian said in March. “We’re listing it for sale and plan to close very soon to pay the taxes. Hopefully there will be something left over to help with other expenses.”
Real estate taxes for 2024 were also unpaid. Lake County Clerk Anthony Vega said no one purchased those taxes of more than $1 million, making the county the lienholder. If FNA acquires the property for unpaid taxes, the county’s tax lien is eliminated.
Waukegan Mayor Sam Cunningham, who has remained largely silent about Vista and its financial situation in recent months, voiced concerns about the recent departure of CEO Kim Needham, a 27-year employee.
But after learning about the credentials of Needham’s successor, Daisy Rodriguez, Cunningham said he is “cautiously optimistic.” News of the continued situation of unpaid real estate taxes upset him because he wants Vista and AHS management to concentrate on healing community members who need the hospital’s care.
“I am disappointed that this matter remains unresolved,” Cunningham said in an email Friday. “This needs to be finalized so that the leadership of American Healthcare Systems can focus its full attention on the operations of Vista Medical Center East and the healthcare needs of the region.”
More Top Picks Beats Solo 4
For Cunningham, a Waukegan native, keeping Vista open and operating is a high priority. He said in an interview Aug. 6 that he will work with others to “pursue every possible path to keep the facility open.”
When AHS purchased Vista from Quororum Health Corp., it bought the Vista corporation rather than its assets, leaving it with debts accumulated by Quororum. Expenses have continued to mount ever since.