Officials: Vista Medical Center East sale will benefit the Waukegan area
By Steve Sadin
Vista Medical Center East in Waukegan, along with its affiliated physician clinics and outpatient facilities, are in the process of being sold to a 2-year-old health care company that specializes in operating community hospitals.
Vista is under contract to be sold by Tennessee-based parent company Quorum Health Corporation to Los Angeles-area headquartered American Healthcare Systems by May 31 pending regulatory approval from the Illinois Health Facilities & Service Review Board.
Officials at both Quorum and American Healthcare said their companies were privately held, and declined to give any financial details of the transaction.
Faisal Gill, American Healthcare’s chief legal officer, said the company specializes in community hospitals like Vista. It will be the company’s fourth acquisition of a health care company since it was founded in 2021.
“We think Vista will be a great fit for us,” Gill said. “We look to find good companies, and make a difference. We like community hospitals which are the only ones in the area. We acquire community hospitals where we can make an improvement.”
Nicole Edwards, a corporate communications spokesperson for Quorum, was not specific about why the current 16-hospital chain was selling Waukegan’s lone hospital, and the other facilities affiliated with it.
“Quorum Health remains committed to strengthening the company by refining our portfolio to better support health services in core markets,” Edwards said in the email, declining to answer other questions.
Waukegan Mayor Ann Taylor said in an email American Healthcare officials reached out to her and is pleased with the company’s, “expressed intention to preserve and grow hospital services and retain existing staff.”
“AHS has shared with me its commitment to health care excellence in the context of community hospitals, as well as its positive track record of acquiring underperforming hospitals and increasing health care services while preserving staff,” Taylor said.
American Healthcare currently operates Randolph Health Hospital in Asheboro, North Carolina, the South City Hospital in St. Louis and Gateway Regional Medical Center in Granite City on the Illinois side of the St. Louis metropolitan area.
Gill said American Healthcare specializes in finding underperforming hospitals with their attendant health care operations and improves their performance. Mike Sarian, the company’s founder, chairman and CEO, is an experienced health care executive.
“He has 30 years experience in the health care business,” Gill said. “He decided to start his own company.”
Shortly after Sarian started American Healthcare, Gill said it bought Randolph Health Hospital out of a bankruptcy and “turned it around.” It is now profitable and offering better health care, Gill said.
Just under a year ago, Gill said American Healthcare acquired South City. Though not in bankruptcy, it was underperforming and is now operating on a stronger footing.
Communities like Waukegan are appealing to American Healthcare. Gill said the city is not unlike other communities where company hospitals are located.
“We don’t mind going into underserved communities” Gill said. “That’s where we can make a difference and provide quality health care.”
Along with the hospital, Vista operates a Lindenhurst campus with ambulatory care, a free-standing emergency center and a medical office building. There is also an outpatient imaging facility in Gurnee and other offices in northern Lake County, according to a news release from the organization.
Founded as Victory Memorial Hospital in 1923, Vista Health started in 2000 taking over both Victory and St. Therese hospitals. St. Therese was subsequently closed. Quorum acquired the hospital in 2016.