Prime Healthcare reps in Joliet address staffing, hospital identity as Ascension sale nears

Joliet — State Sen. Rachel Ventura, D-Joliet, hosted a town hall at the Joliet Public Library – Black Road Branch on Wednesday to discuss the pending acquisition of Ascension Saint Joseph-Joliet hospital by Prime Healthcare.

Representatives from Ascension and Prime discussed the $375 million deal to buy nine Ascension facilities in the northern Illinois region, including Saint Joseph-Joliet, in an agreement that was announced in July. The transaction soon will go before the Illinois Health Facilities and Services Review Board for final approval.

Representatives fielded questions from about 40 attendees.

“We want to make sure we have the best health care in our region, and we want to give the community an opportunity to share with them what changes they want to see and get their questions answered,” Ventura said. “We want this to be a seamless transition, and we want to start our relationship with Prime off well, and that starts with communication.”

Prime Healthcare is a for-profit company that currently operates 44 hospitals in 14 states. If the sale is approved by the IHFSR board, the nine Ascension hospitals will become the company’s first properties in Illinois.

Although Prime is a for-profit company, Fred Ortega, senior director of government relations for Prime Healthcare, emphasized that it is not a private equity firm and does not have shareholders, something he said “allows us to reinvest profits in our company and improve our hospitals.”

He also emphasized that the company was founded and run by physicians, and that throughout the company’s history, they have “never closed a hospital’s doors.”

“During the first year, we need to get our footing and determine a hospital’s need. Typically, we’ll end up expanding services and, if that’s the case, we’ll increase staffing.”

—  Fred Ortega, senior director of government relations for Prime Healthcare

Assurances also were made that Prime will maintain the same level of charity care previously provided by Ascension, and that the change in ownership will not affect the hospital’s acceptance of Medicare and Medicaid patients, which Ortega said “are a huge part of our patient makeup nationwide.”

Labor relations

Many of the questions directed to Ortega during the course of the meeting involved complaints that residents and hospital employees have had against Ascension, including labor issues with the nurses union and the closure of certain hospital units over the past two years.

Ortega noted that although it is “too early” to know the details of specific services that will be provided, the recently negotiated contracts with the St. Joseph Nurses Association and other unions “will be honored.” Additionally, pensions and seniority will not be affect, even though all current employees will need to reapply for their jobs to be officially hired by Prime.

“I think a lot of what we’ve heard here today will resonate with our nurses. We are cautiously optimistic about this change.”

—  Alec Ramsay-Smith, Illinois Nurses Association union representative

He also said that it is “a definite possibility” more hiring will take place after the acquisition is complete.

“During the first year, we need to get our footing and determine a hospital’s need,” Ortega said. “Typically, we’ll end up expanding services and, if that’s the case, we’ll increase staffing.”

Understaffing has been a concern for hospital patients and employees since the COVID-19 pandemic, and it has been an issue in the ongoing labor struggles between Ascension and the nurses. It also has led to the closures of multiple hospital units since 2022.

Prime Healthcare has promised that an initial investment of $250 million will be made in the newly acquired Illinois hospitals within the first five years of ownership; however, it has not yet been determined what the allocation of those funds will be. Ortega said the company is “still assessing facility needs;” however, he assured residents that “there are no plans that I am privy to to reduce hospital capacity.”

Local identity

Another subject that residents sought clarification on was the retention of the Saint Joseph name and religious iconography, since Prime is a secular company.

Ortega said “conversations are ongoing” with the Diocese of Joliet about the retention of the religious name, but in cases where Prime has previously acquired Catholic hospitals, major iconography including chapels have been retained.

If the church grants approval to keep the name, the hospital once again will be known only as St. Joseph Hospital, or St. Joseph-Joliet.

“I’m hopeful about this acquisition,” Ventura said. “I think a lot of people are ready for a clean slate, and I hope that’s what this is giving us.”

“I think a lot of what we’ve heard here today will resonate with our nurses,” Illinois Nurses Association Union representative Alec Ramsay-Smith said. “We are cautiously optimistic about this change.”

Ortega’s full presentation explaining the background and examples of Prime Healthcare’s past success stories reviving struggling hospitals is available to view on Ventura’s website.

Residents with questions about the acquisition also are welcome to reach out to Ventura’s office or attend the IHFSR board meeting at the Bolingbrook Golf Club on Oct. 29.

If the board grants approval, Ortega reported that Prime Healthcare hopes to take control of the hospital by February.