An ambitious plan to build a $240 million facility for Provident Hospital has been put on hold — a move that follows the recent ouster of Cook County Health’s CEO and an announcement last month that competing hospitals nearby hope to build their own facility.
Cook County Health announced in August it planned to invest in a new eight-story building for the historic Bronzeville hospital just west of its current location. The new facility was to be smaller but offer some services the current one doesn’t and include 70 outpatient exam rooms, following a national trend of more procedures being done without the need for an overnight stay.
But the Cook County Health board of directors has decided to press pause on the project, Cook County Health confirmed in a statement Monday.
“The health system board believes that a project of this magnitude requires strong leadership,” the system said in a statement. “The board believes it is prudent to pause the project until a new CEO is named and he/she has the opportunity to become fully briefed in order to direct this project to a successful completion.”
Demolition of a vacant, former outpatient building to the west of the current Provident building will continue as planned.
The Cook County health board voted in late November to end the contract of CEO Dr. Jay Shannon. Members indicated they wanted new leadership at the system, which includes Stroger Hospital on the city’s West Side. The health board did not give a reason publicly for Shannon’s departure, but there was growing concern among county officials about the rising costs of medical care not covered by either private sector health insurance or Medicaid.
Shannon left with a $542,000 severance package and an annual pension of more than $250,000, the Tribune reported.
Last month, four other South Side hospitals announced plans to join forces and spend $1.1 billion on a construction plan that includes building at least one hospital.
The leaders of Advocate Trinity Hospital in Calumet Heights, Mercy Hospital & Medical Center in Bronzeville, South Shore Hospital in South Chicago and St. Bernard Hospital in Englewood said their deal could be finalized by the fall, and hospital closures could also be possible. The plan includes opening three to six community health centers, each 30,000 to 50,000 square feet, that would offer outpatient surgeries, testing, mental health services, urgent care and primary care.
It’s possible those merger plans contributed to Cook County Health’s decision to put the Provident project on hold, said Jennifer Perry, managing principal at FMG Leading, a consulting and strategic advisory firm. Perry is not involved in either project.
“In the face of a competitor saying they’re going to open not only a new hospital but also a significant number of outpatient centers, I would imagine they would not only want to take a step back to look at what’s needed, but also how do they respond and how do they position themselves,” she said.
At the time the Provident project was announced in August, Cook County Board President Toni Preckwinkle called the new facility “a true and lasting commitment to the patients we serve and our greater community.” Cook County Health had planned to finish construction in 2023. System officials said a new hospital would allow more patients to go to Provident for care rather than travel to Stroger, which is eight miles away.
Provident Hospital opened in 1891 as an African American hospital, and the country’s first open-heart surgery was performed there by Dr. Daniel Hale Williams, an African American doctor. Provident also had the first nursing school for black women in Chicago.
The Illinois Health Facilities & Services Review Board approved Cook County Health’s application to build the facility in October.
WBEZ first reported that the Provident Hospital project was on hold.
This story has been corrected to note that nearby hospitals made their facility announcement last month.
