Troubled operator of suburban hospital faces calls to sell it as issues mount

Waukegan Troubled operator of suburban hospital faces calls to sell it as issues mount The hospital can no longer accept any emergency vehicles due to state regulators taking away its designation to operate a trauma center. By Paris Schutz • Published November 12, 2026 • Updated on November 12, 2026 at 5:12 pm With ambulances now bypassing a hospital in Chicago's north suburbs and the facility losing its trauma designation, the troubled operator behind the struggling hospital is facing calls to sell as issues with the facility continue to mount. Illinois U.S. Congressman Brad Schneider has called for the operator of Waukegan’s Vista Medical Center East to sell the facility as the hospital can no longer accept any emergency vehicles as state regulators also took away its designation to operate a trauma center. Stream NBC 5 for free, 24/7, wherever you are. WATCH HERE The move essentially left a city of nearly 90,000 residents without a functioning emergency room. “I was born there. I worked there. I’d hoped to die there,” said Ellen Powell, an 86-year-old resident who lives within blocks of Vista. Now, she said she’s actually relieved that emergency vehicles would have to take her elsewhere in the case of an emergency. “I’ve been so thankful that the emergency vehicles will no longer take patients there because it was my biggest fear, having some kind of problem and getting dumped in that hospital,” she said. Waukegan Nov 11 Fire departments warn of longer ambulance trips, less coverage amid issues Vista hospital Waukegan Nov 7 Vista Medical Center East placed on EMS bypass amid ongoing challenges The hospital has a history of failing to meet payroll, among other financial struggles. This week, the Illinois Department of Public Health called those ongoing problems “unacceptable” and “irresponsible," saying ”their lack of communication, transparency, and responsible financial management and contingency planning is extremely concerning.” A California-based company called American Healthcare Systems became Vista’s fifth owner in less than 30 years when it purchased the hospital in 2023 promising an expansion of services. But the problems only got worse under AHS as the state first revoked Vista’s trauma status in 2024, meaning it no longer had a functioning emergency room. It was reinstated later that year. In January 2025, 28-year-old patient Chelsea Adolphus was found dead of hypothermia after accidentally being locked on the hospital’s rooftop for hours. In October 2025, Vista stopped offering maternity and obstetrics care. And last month, IDPH once again revoked the hospital’s trauma status, citing the lack of an anesthesiology department to care for surgical patients. “It is absolutely personal,” said Lake County Coroner Jennifer Banek, who worked at Vista as an anesthetist until 2024, when she said her paychecks started bouncing. She’s been blowing the whistle on AHS ever since. “I have never seen anything like what I’ve seen here at Vista Medical Center and it is an injustice to the patients and the community members that live here,” Banek said. State and county records revealed AHS failed to pay more than just employees. ComEd confirmed the company owes $2.2 million and counting in unpaid power bills and the city of Waukegan is owed more than $300,000 in unpaid water bills. Vista has a bill of more than $2 million for unpaid property taxes and state records indicate AHS, which also owns Gateway Medical Center in downstate Granite City, owes around $130 million in unpaid healthcare provider taxes and repayments of advance loans the state awarded so the hospital could meet payroll. “This is chronic behavior, taking advantage of the community members here and the goodwill of places like city of Waukegan that provide water and ComEd that provides electricity, none of whom want to shut off those services because they don’t want the patients to suffer,” Banek said. “[AHS] needs to think seriously about relieving itself of this asset,” said Waukegan Mayor Sam Cunningham, who said the city has adjusted in the meantime, putting an extra EMS vehicle into service to shuttle an average of 600 monthly emergency patients to nearby hospitals like Advocate Condell Medical Center in Libertyville and Northwestern Medicine Lake Forest Hospital. Waukegan Fire Chief Matt Burleson said his department is managing - for now. “The biggest thing is instead of a five-minute response time and having our ambulances still in town at the hospital, they’re now 20 minutes away, 25 minutes away,” Burleson said. Ellen Powell said she and fellow residents of Waukegan deserve a hospital in town that has a functioning emergency room and a higher quality of treatment. “I have to drive by the hospital to go to a decent hospital to get my care. And it infuriates me every time I do that,” Powell said. Efforts to reach a phone number and email listed for American Healthcare Systems were unsuccessful. This article tagged under: Waukegan