Presence Health's finances are beginning to improve due to a turnaround plan established by the Chicago-based system's CEO Michael Englehart, according to the Chicago Tribune.
Presence, which was formed in 2011 through the merger of Chicago-based Resurrection Healthcare and Mokena, Ill.-based Provena Health, reported an operating loss of $186 million in 2015, compared with an operating loss of $12.7 million the year prior. To address the system's financial troubles, Mr. Englehart put a turnaround plan in place, which includes restructuring the system's balance sheet.
In May, Presence obtained a $528.1 million bridge loan. The system said it would use the funds to pay off loans it received from seven banks in 2013. The system's operating loss in 2015 triggered violations of financial conditions of those loans, according to the report.
Presence is now proposing to sell about $970 million in new bonds, the proceeds of which would be used to refund all outstanding bonds previously issued by the system and its legacy borrowers Resurrection and Provena.
According to the Chicago Tribune, Presence's financial performance for the first six months of the year is better than its projections. However, with admissions, inpatient and outpatient surgeries, and births declining in the first six months of the year, it's too early determine if the system's financial turnaround plan will be a success, according to the report.
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