Already in a tight financial situation, Vista Medical Center East in Waukegan is studying the impact cuts to Medicaid in the “big beautiful bill” President Donald Trump signed into law Friday, reducing both taxes and government spending.
A significant percentage of Vista’s patients are on Medicaid, underinsured, or uninsured, forcing a reliance on Medicaid payments to fund the care those patients receive. Nationwide, healthcare funding for millions of people will be cut by $1 trillion over the next 10 years.
Vista officials have said over the past two years that patients will not be turned away because of a lack of ability to pay. Vista CEO Kim Needham said Monday she and her staff are working to determine the precise effects of the legislation.
“We don’t know the impact yet, but Medicaid is used by thousands of patients in Lake County,” Needham said. “We’re nervous about the Medicaid cuts. We know we will have to make some changes when we find out more.”
Healthcare professionals and elected officials expressed concern Monday around Lake County about the impact of the ‘big beautiful bill” on patients who rely on Medicaid for their medical needs.
State Sen. Adriane Johnson, D-Buffalo Grove, said the state made allowances in its most recent budget for some healthcare providers who rely on Medicaid.
Sam Johnson, the deputy executive director at the Lake County Health Department and Community Health Center, expressed concern in an email, but wants to reassure people who come there for care.
When American Health Systems (AHS) purchased Vista two years ago from Quorum Health Corp., Faisal Gill, AHS’s chief legal officer, said it also took on the debt of the seller. He hoped to eliminate the operating losses in a year, but they continue.
Needham said Vista applied to the state of Illinois for safety net hospital status on June 30, and expects a response in early October. It provides services to the uninsured, underinsured and people on Medicaid. It would provide an additional revenue source for Vista.
Sen, Johnson said the state approved funding of $600 million for safety net hospitals in its most recent budget passed in May. It was included, in part, because of the anticipated legislation in Washington. Should Vista be approved, Needham said it will be a significant benefit.
U.S. Rep Brad Schneider, D-Highland Park, voted against the federal legislation — it passed with a 219-213 vote in the House of Representatives, and Vice President JD Vance broke a 50-50 tie in the Senate. Schneider said in an email it will have a weighty impact in the 10th Congressional District.
He said it will leave, “tens of thousands of Illinoisans here in the 10th District without health care.” He plans to work with healthcare leaders in the community to learn what can be done to help.
“It will imperil hospitals, like Vista Medical Center East, that serve thousands of patients in their communities, many if not most who rely on Medicaid,” Schneider said in the email.
Meanwhile, Needham said she and her staff are looking at possible remedies when the anticipated Medicaid cuts hit. Potential changes may result in reducing personnel, or eliminating some service lines, like offering vaccinations or outpatient tests a doctor may prescribe.
“We know we will have to make some decisions when it comes due,” Needham said. “Some hospitals may have to close their doors. We hope it is not us, but we will have to look at everything closely. We know we have an important place in the community.”
At the Lake County Health Department, Sam Johnson said many of the department’s medical and behavioral clients rely on Medicaid. They receive critical services there, and they will not be interrupted regardless of the “big beautiful bill.”
“We are concerned anytime there are changes that will create barriers and prevent people from accessing healthcare,” Johnson said. “This is an ongoing situation that we are continuing to follow, but we want to remind the community that just because you are on Medicaid does not mean you no longer have access to services.”
With the changes expected to unfold over time, Johnson said the county will work closely with its clients, keeping them informed while continuing to “provide them with high-quality care.”
The changes are expected to roll out over time. As they do, Johnson said, “We will be working closely with our clients to keep them informed and continue to provide them with high-quality care.”
Frequently saying Waukegan must have a hospital, Sen. Johnson said her vow has not changed. If Vista were to close, Waukegan would be the largest city in Illinois without a hospital.
“There must be a hospital in the city of Waukegan,” Johnson said. “I don’t care who owns it, but there must be one. It is important in an area where so many are underserved.”
The Associated Press contributed to this story.
