Unpaid real estate taxes for the past two years by Vista Health Systems for its Vista Medical Center East hospital in Waukegan have created a liability of more than $2 million, and the potential for the property’s sale to recoup back taxes.

Since Los Angeles area-based American Healthcare Systems (AHS) purchased the hospital, assuming the debt of former owner Qurorum Health Corp., in July of 2023, both financial and operational problems have continued to mount.

Lake County Clerk Anthony Vega said when a property owner does not pay their real estate taxes, the county sells the taxes to a buyer who must give the owner a period of time to redeem the obligation, while interest, in this case, accrues at 12% per year.

FNA DZ, a company specializing in buying property taxes as an investment, purchased Vista’s 2023 taxes payable last year, but Vega said no one acquired the 2024 taxes, which were due earlier in 2025 at this year’s tax sale, making the county a secondary lienholder to FNA.

Vista Health Systems’ failure to redeem the outstanding property taxes before the annual tax sale on Nov. 13 at the Lake County Courthouse and Administration Building in Waukegan puts it at risk of losing the property as early as this summer.

Though FNA had the opportunity to start the process to own the hospital property this month, Vega said it extended the deadline to June 12. At that time, FNA can give Vista more time or start the process to become the owner. Meanwhile, Vista must pay FNA nearly $1.2 million by June 12.

Deanna Cruz, Vista’s community engagement and marketing director, said in an email Thursday that Vista is in communication with its creditors, including FNA, as it “focuses on a sustainable path forward.”

Cruz said Vista is looking at all of its financial obligations and making decisions that promote “evaluating options that promote long-term stability.” She was not specific about Vista’s unpaid property taxes.

“Vista Health System is taking strides to carefully assess its financial landscape while prioritizing patient care, responsible stewardship and support for its staff,” she said. “We understand the importance of addressing all financial obligations in a manner that upholds our commitment to the community.”

In the event FNA takes title to the property, Vega said the county’s secondary lien would be extinguished, leaving the municipalities, townships, school districts, park districts, and others who rely on property taxes, approximately $1 million short among them.

“Vista is, once again, abdicating its responsibility to the community, and its irresponsible actions have now created a situation where the taxing districts are not receiving the full tax revenue that is owed to them,” Vega said.

Lake County Board Chair Sandy Hart’s concerns over Vista’s financial situation have continued to mount since they first came to light early last year, when hospital board members learned bills were not being paid and service providers were refusing to continue doing business with the hospital.

“My greatest concern is, what does this mean for the financial health of the hospital?” Hart said in a text. “The people of Waukegan and surrounding areas deserve first-class healthcare, and it certainly seems like that may be in jeopardy.”

Property taxes are not the only unpaid obligation for Vista. As of Thursday, the city of Waukegan is owed $330,600 for providing water to the hospital, according to the city’s water department.

When Vista announced in September that it was eliminating obstetrical and neonatal services on Oct. 28, community members were once again alarmed at yet another setback for the hospital. State Sen. Adriane Johnson, D-Buffalo Grove, said at the time it was, “another blow to our community.”

“The failed leadership of the previous Vista heads has left the current CEO in an impossible situation to save our hospital,” Johnson said at the time. “It should never have come to this.”

In January, Vista furloughed 69 non-medical personnel — 8.6% of its workforce — for six weeks. The furlough extended longer than six weeks, and some of the workers never went back to work there.

https://www.chicagotribune.com/2025/11/20/vista-medical-center-east-taxes/