The founder of a Chicago-based health care consulting firm said Friday an investment group he leads has acquired the shuttered MetroSouth Medical Center in Blue Island and plans to reopen it with limited services.
David Smith said his group has acquired the facility from Quorum Health for $1. Smith, CEO of Third Horizon Strategies, said he hopes to bring back urgent care and outpatient services in a few weeks. He also plans an emergency department, but that requires state approval and can take months.
While MetroSouth would not again be a full-fledged hospital, Smith he hopes to re-establish services that the south suburbs and the city’s South Side need the most, while working with other hospitals to coordinate care. “Mid- to long-term, I hope this is part of a much bigger transformation scheme. How do we rethink the rule of primary care hospitals in the community?” Smith said.
Quorum Health closed the century-old hospital in September, ahead of state authorization to do so, amid financial losses. MetroSouth relied heavily on Medicaid reimbursements, which are less than Medicare or private insurance, and faced declining demand for some services.
Smith would not name his partners but said they include “federally qualified health centers, philanthropists and investors” motivated not by profit but by a “social impact disposition.” He has registered a company called South Side Health for the purchase and said he plans an open letter to the community about his plans.
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Crain’s Chicago Business first reported the acquisition of MetroSouth.
Smith praised Quorum Health for securing and maintaining the property, saying the facilities are in excellent shape. He said his team will examine other ideas for the site, such as transitional housing for those recovering from addictions. Quorum Health could not immediately be reached.
State Rep. Robert Rita, D-Blue Island, said he welcomes Smith’s involvement. “It’s a good alternative to what we have. At this point, we have a vacant building, a vacant hospital,” he said. Smith “seems to have credible people around him,” Rita said.
Rita has a bill that passed the Illinois House and is pending in the Senate that authorizes the state to grant a license for emergency room operations at the site. The decision would come from the Illinois Health Facilities and Service Review Board.
