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Presence may be starting turnaround

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Chicago-based Presence Health might be making progress toward a financial turnaround, reports the Chicago Tribune.

The paper says that Presence’s financial performance for the first six months of the year exceeded its projections. Still,   with admissions, inpatient and outpatient surgeries and births declining in 2016’s first half, it’s too early to say that the system is approaching broad, sunlit uplands.

Presence,  formed in 2011 through the merger of Chicago-based Resurrection Healthcare and Mokena, Ill.-based Provena Health, had an operating loss of $186 million in 2015, compared with 2014’s $12.7 million operating loss.

To address the system’s financial troubles, Michael Englehart, Presence’s CEO, launched a turnaround plan that includes restructuring the system’s balance sheet.

The Tribune reported that in May, Presence got a $528.1 million bridge loan to be used to pay off loans  from seven banks in 2013. The system’s 2015 operating loss  triggered violations of financial conditions of those loans.

Presence now wants to sell about $970 million in new bonds. The proceeds would be used to refund all outstanding bonds previously issued by the system and its legacy borrowers Resurrection and Provena.

To read the Chicago Tribune story, please hit this link.

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