06/06/2013 12:07 pm ET

Roseland Hospital Stays Open: State Grants 'Temporary Assistance' To Cash-Strapped Community Hospital

An eleventh-hour state bailout has saved Roseland Community Hospital on Chicago's South Side from shutting its doors — at least for now.

Gov. Pat Quinn approved $350,000 in "temporary assistance" to help the cash-strapped hospital avert a shutdown, but warned a sustainable long-term solution must be found.

"Roseland Community Hospital is an anchor in the community, and we will do what we can to protect the patients and employees," Quinn said according to Tribune. "The hospital must take the necessary steps to develop a plan for a sustainable future."

A large portion of the community hospital's patients are the poor and uninsured. According to WBEZ, the hospital’s annual uncompensated care is $25 million.

While ABC Chicago reports the $350,000 will help Roseland meets its upcoming June payroll, the sum is just a fraction of the $7 million originally requested by the hospital.

The emergency aid also comes with conditions: Finance experts will review the hospital’s budget, operations and finances and an independent “chief restructuring officer” will develop a long-term financial plan for the hospital, the Sun-Times reports.

The reprieve comes a little more than a day after the hospital's then-CEO, Dian Powell, resigned, according to NBC Chicago.

The blame for Roseland's financial woes had been kicked back and forth between Powell and the state with the CEO claiming the state had not payed Roseland funds promised; Quinn, meanwhile, cited “poor management” for the financial trouble.

The money for the bailout comes from existing state funding dedicated to public health purposes, community and non-profit organizations. The only hospital in a 7-mile radius, Roseland provides services including dentistry, neonatology, women's health services and outpatient surgery.



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