By Lorraine Swanson, Editor, Lake Effect News
The Chicago Institute of Neurosurgery and Neuroresearch Medical Group pleaded its case for closing the hospital it has operated in Ravenswood since 2003 in a public hearing before state health officials at the Sulzer Library last week.
CINN announced plans in August to join forces with the NorthShore University Health System in Evanston and close the Neurologic and Orthopedic Hospital at 4501 N. Winchester. CINN’s agreement with NorthShore is conditioned on obtaining the governmental approvals from the state. The hospital treats a wide range of complex neurosurgical, neuromedical and orthopedic cases.
In his testimony before the Illinois Facilities Service and Review Board, CINN Chief Operating Officer Peter Breen blamed low occupancy levels and the changing healthcare environment, coupled with multi-million dollar loans for the hospital’s poor financial performance. While clinically successful, the hospital has suffered losses of $30 million over the past two years.
“While regrettable, the only option available is to discontinue operations,” Breen said.
CINN leases the 8-story building adjacent to the former Ravenswood Hospital Pavilion from Health Care REIT, a Toledo, Ohio-based trust that invests in senior housing and health care properties. Breen said that REIT worked with the medical group to consolidate its outstanding debt.
“Despite this unusually high level of cooperation between the property owner and the hospital,” Breen explained, “the stark reality is that Neurologic and Orthopedic Hospital cannot even pay debt service on the loans, let alone pay down principal.”
Dr. Leonard Cerullo, founder and medical director of CINN, stated that the hospital falls below the state hospital occupancy standards. He added that other hospitals in the surrounding community–Weiss, Aurora Chicago Lakeshore, Thorek, Methodist and Swedish Covenant Hospitals–have already said they would take patients normally accepted by Neurologic and Orthopedic Hospital.
Jeffrey Miller, vice president of operations and general counsel for Health Care REIT, said his firm was already at work on a comprehensive leasing or re-use plan.
“Let me assure you that Health Care REIT will aggressively pursue alternative users who will occupy the facility and build the economic bases of the community,” Miller said.
Ald. Gene Schulter (47th) called the impending sale of the medical group and the hospital “disastrous” for the community. In addition to a loss of 300 jobs, Ravenswood Hospital’s former owners, Advocate Health Care, enacted a “non-compete” clause prohibiting specific medical uses from being conducted on the site when they sold the property.
“This means that there will be a technologically-equipped hospital sitting vacant and unusable in the middle of the 47th Ward,” Schulter said. “I am very disappointed in our suburban neighbors. While they rely on the stability and access to clients brought to them by their proximity to the city of Chicago, they are actively undermining my community’s quality of life.”
Schulter further cited the ongoing vacancy’s negative impact on surrounding businesses, crime rates and property values in the Ravenswood neighborhood.
“I oppose this application,” Schulter said.
State Sen. Heather Steans (D-7th District) and state Rep. Greg Harris (D-13th District) supported Schulter’s opposition to the sale of CINN and the closing of the hospital.
“The abrupt nature of the closing of this facility, in my opinion, is not being carried out in an orderly or timely manner and will decrease rather than guarantee the availability of quality health care… to the surrounding community and to existing patients,” Harris said. “I speak for my constituents to oppose this application for closure to benefit a suburban hospital and small handful of investors.”
Harris also urged the Illinois Director of Public Health and the planning board to examine the legality of the anti-compete covenant implemented by Advocate “to see if its existence threatens the general public health of this community by denying access to adequate healthcare facilities.”
At Schulter’s urging, neighborhood residents, many of them employed by CINN, testified at the hearing, supported closing the hospital.
“I don’t know anyone who lives in the neighborhood who uses this hospital and don’t think it will be a problem,” Ravenwsood resident Patty Tillman said. “I support the application.”
After the public hearing, Schulter lambasted CINN for putting up its own employees or their family members to testify in favor of CINN’s application, stating that it was an insult to the community and to themselves. He also chastised officials from nearby Weiss and Thorek Hospitals for their favorable testimony.
“Their only concerns are the bottom line; it means more money for them,” Schulter said. “They haven’t come to the table to say how we’re going to solve these empty buildings in the Ravenswood area. They’re greedy people.”
The state review board’s rules that public hearings be held during the day precluded many working residents from attending the hearing, Harris said.
“Had this meeting been held at night, you would have had a roomful of angry people here,” he said.
The Illinois Health Facilities and Review Board is scheduled to meet in December to review and vote on CINN’s application to close the hospital. Pending the review board’s approval, CINN could pull up stakes and relocate to Skokie by the end of the year.
The review board will continue to accept public comments up to 9 a.m. Nov. 12. Comments should reference Project 09-045 and be sent to Mike Constantino, Supervisor, Project Review Section, Health Facilities Service and Review Board, 525 W. Jefferson, 2nd Floor, Springfield, IL 62761, or by fax at 217-785-4111.
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