Investing in sophisticated medical equipment and re-engaging with the medical community that began treating patients elsewhere, officials say Vista Medical Center East in Waukegan is making strides 18 months after its acquisition by American Healthcare Systems (AHS).
Hitting a low point losing its Level II Trauma Center status on Feb. 5 — it was reinstated on March 11 — AHS is reducing the debt it inherited when it bought the hospital from Qurorum Health Corp, they said. It is taking steps to reach profitability despite a heavily uninsured and underinsured patient base.
Kevin M. Spiegel, Vista’s new president and CEO who started on Oct. 14, has nearly 20 years of experience as the head of hospitals and hospital systems similar to Vista in communities like Waukegan. His career in the healthcare industry spans more than four decades.
“A large percentage of our patients are uninsured or underinsured,” Spiegel said. “It’s a lot more than other hospitals in the area. More women are having their babies here now. We’re making sure women are getting the right kind of care.”
Vista Health Systems continues to make the necessary investments to enhance its facilities and attract more medical personnel to assure people in the Waukegan area have the healthcare facilities they need, he said.
One way Spiegel said he hopes to improve revenue when treating uninsured or underinsured patients is by making Vista a Safety Net Hospital. The closest ones to Waukegan are in downtown Chicago, and on the city’s south or west sides.
“Funding for being a Safety Net Hospital will be a big help,” he said. “It helps pay for uninsured and underinsured patients. A large percentage of our patients are underinsured or uninsured. We don’t turn anybody away.”
Working with state Sen. Adriane Johnson, D-Buffalo Grove, and state Rep. Rita Mayfield, D-Waukegan, Spiegel said steps are being taken to get the Safety Net Hospital designation for Vista. Johnson said that will help the situation.
“It helps when there are significant health disparities,” Johnson said. “I feel Vista should qualify. I believe healthcare is a right, and this is one way to help ensure that right.”
Since AHS acquired Vista in July of 2023, Spiegel said the Los Angeles area-based corporation has invested $15 million in new equipment, including $7 million since he took the helm in October. That will help make the operating room and other parts of the hospital state-of-the-art.
“We’re improving our high-tech operating room equipment and our imaging equipment,” he said “This will help us recruit specialists we need. AHS has helped us with an infusion of cash.”
Early last year, before the trauma center decertification, some community members became concerned about the hospital’s future. Johnson arranged several meetings to bring people with differing views together. She is encouraged by Vista’s progress.
“They certainly had a bit of a rough patch,” she said. “I am very hopeful they will continue to be laser-focused on the people in the community, and providing the best quality of healthcare. We need a hospital in Waukegan.”
Kim Needham, Vista’s assistant CEO and a 25-year employee of the hospital, said last spring OB-GYN physicians started delivering their patients’ babies at other hospitals. New births hit a low in May with 19, but rebounded to 32 in November.
“We have re-engaged with a number of our OB-GYN and family practitioners,” Needham said. “We are now a health partnership with the Lake County Health Department.”
Though investments are being made to put Vista on a sound financial footing, Faisal Gill, AHS’s chief legal officer, said Vista, which owns the building and land beneath it, is behind on its property tax payments.
Gill said AHS is working with the appropriate Lake County authorities to get property taxes current, but he did not say when it would happen. AHS is also working to retire the debt it acquired when it purchased Vista.
“Our first goal is stabilizing the hospital,” Gill said. “We think it will take another six months,” he added, referring to his estimate of reaching profitability.
Smoothing relationships with the hospital staff is another effort Spiegel is undertaking. Needham said there will be town halls for all employees, where they can learn what is happening at the hospital and offer their opinions. They will start early next year.
“There will be open dialogue with the employees on the current status of the hospital and its future plans,” Needham said. “This will give the employers an opportunity to have a voice.”
