July
5, 2006 Mokena, Illinois -- Officials
with Provena Health and Vista Health today
announced an agreement that reduces Vista
Health’s debt obligation to Provena Health
from $39 million to a $9 million cash settlement.
The agreement, which came at the close of
sale of Vista Health to Community Health Systems,
Brentwood, TN, was supported by the Illinois
Attorney General’s Office.
Vista
Health, which includes Saint Therese Medical
Center and Victory Memorial Hospital, was
formed in early 2000 through a joint operating
agreement with Provena Health which also owns
six hospitals and 16 long-term care facilities
and with Victory Memorial Services which owns
a hospital, long-term care facility and surgical
center. In February 2002, Provena withdrew
from the agreement citing an inability to
contribute 42% of financial support to Vista’s
long-range $200-million strategic initiative
because it would divert scarce financial resources
from Provena’s wholly-owned ministries.
When Provena announced plans to withdraw from
the joint operating agreement with Vista Health
in February of 2002, both parties sought arbitration
regarding the assets owned by Provena, namely
Saint Therese Medical Center in Waukegan.
The arbitrated resolution finalized in the
fall of 2003 obligated Vista Health to satisfy
the $39 million in debt and for Provena Health
to relinquish its local assets. The recent
settlement reduces Vista’s debt obligation
by $30 million.
According
to William T. Foley, President and CEO of
Provena Health, “We are pleased to have
resolved this issue in a manner which not
only satisfied Vista’s outstanding obligation
to us, but also leaves the community of Waukegan
over $30 million in assets associated with
Saint Therese. We look forward to continuing
to serve the people of Lake County through
Provena Home Care.”
Vista
Health CEO and President, Barbara Martin comments,
“Vista Health has always been committed
to quality health care. This settlement allows
us to advance health care in Lake County while
honoring our long-standing relationship with
Provena’s Catholic sponsors and their
heritage of offering healing and hope to all
they serve."
Provena
Health is a Catholic health system that includes
six hospitals, 16 long-term care and senior
residential facilities, 28 clinics, five home
health agencies and other health-related activities
operating in Illinois and Indiana. Provena
Health ministries are sponsored by the Franciscan
Sisters of the Sacred Heart, the Servants
of the Holy Heart of Mary and the Sisters
of Mercy of the Americas.
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