Holland & Knight Assists Client in Acquisition of MetroSouth Medical Center in Blue Island, Illinois
The Historic Hospital Was Facing Closure Prior to the Acquisition
CHICAGO – A team of Holland & Knight attorneys, led by Chicago Partner Anne Murphy, today completed a transaction in which client MSMC Investors LLC acquired St. Francis Hospital and Health Center from SSM Health Care. The historic 410-bed hospital, founded in 1905, was slated for closure after earlier efforts to find a buyer were unsuccessful. The acquisition was successfully completed on an unusually aggressive timetable. The hospital is the largest employer in Blue Island, and is known for its high quality service and excellence in cardiac care.
"I'm thrilled to have had the opportunity to work on the transaction that will preserve an essential health care resource for the community of Blue Island," Murphy said. In addition to Murphy, a team of Holland & Knight partners, including Elias Matsakis and Tom Skallas from the Chicago office and Maria Currier from the Miami office, were involved in the various aspects of the deal.
A ceremony today marks the official acquisition of the hospital, which will operate as the MetroSouth Medical Center. With a sterling reputation for excellence in acute care, the hospital is also nationally known for its cardiology center. Building on that solid foundation, a number of new or expanded services are planned, according to Dr. Enrique Beckmann, Chief Medical Officer of MetroSouth.
The terms of the transfer from SSM to MSMC are confidential. However, Lawrence Krule, the Chief Restructuring Officer of MetroSouth, said MSMC Investors and its affiliates will be investing approximately $30 million in working capital, new hospital equipment such as a 64-slice CT scanner, a PACs digital imaging system, a new mammography unit and upgrades to patient rooms, that will result in the first hospital on the South Chicagoland area to have all single-patient rooms.
The transfer of the hospital to MSMC Investors received support at every level of government, in particular from State Senator Emil Jones, Jr., and from Blue Island Mayor Don Peloquin and the Blue Island City Council, which enacted resolutions of support and financial incentives for the redevelopment and continued operation of the hospital.
Also providing support were the Office of Governor Rod R. Blagojevich, State Representative Robert Rita, State Representative Kevin Joyce, State Representative Monique Davis, State Representative Will Davis and Congressman Bobby Rush.
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