By Bruce Japsen | It will cost up to $52 million in capital upgrades at Provident Hospital before the money-losing county-owned hospital would be ready for a partnership with the University of Chicago Medical Center, a consultant’s report says.

The Cook County Health & Hospitals System and the University of Chicago Medical Center are studying whether to form a partnership on the city’s South Side that would bring the academic hospital’s physicians to Provident to treat patients and train aspiring doctors. Provident, in turn, would benefit by receiving patient referrals and a marketing boost by adding the U of C’s name and patient care expertise to the 119-bed facility.

If a partnership with Provident happens, the county facility could also
have a role in the U of C’s Urban Health Initiative, which was designed
in part to divert patients from the teaching hospital’s emergency room
to other clinics and hospitals.

Moving less serious outpatient cases from U of C, would open up more of
its beds for more seriously ill and more profitable patients
– a key goal of the Urban Health Initiative.

Meanwhile, Provident’s fate hangs in the balance. The hospital lost
more than $98 million in its 2009 fiscal year, which ended Nov. 30 and
some have called for it to close or convert into a facility that would
largely be used for outpatient medical care services.

Provident’s patients are largely uninsured with the hospital generating
just $31.6 million in operating revenue last year, hospital figures
show. County officials hope a partnership with University of Chicago
would bring more patients insured by the Medicaid health insurance
program for the poor and can bring Provident revenue it does not get
now.

“Provident has a long history in our community and is an important
asset for the South Side of Chicago,” said Kenneth Sharigian, president
of the University of Chicago Medical Center. “While recognizing there
are significant issues to deal with and overcome, we continue to be
committed to exploring ways we can help the hospital stay open and keep
serving the community.”

One scenario involves a joint county and U of C “effort to expand
current inpatient and outpatient services at Provident,” the U of C
said in a statement to the Tribune. The other scenario would result in
Provident “downsize to outpatient services only.”

But before Provident does any deal with the U of C, consultants from
Philadelphia-based Health Strategies & Solutions Inc. say the
facility needs a new heating, ventilation and air condition systems as
well as new diagnostic imaging equipment no matter what scenario is
pursued.

A conversion to outpatient services only would cost $18 million to $27
million with the most expensive option costing up to $52 million
because Provident would also need a new clinic, office building and its
inpatient units and emergency room would need to be renovated, the
consultant’s report said.

How any costs to upgrade Provident would be paid for has not been
determined. But Health Strategies report says any expenses to upgrade
the facility could be saved should Provident be successful at
attracting Medicaid patients.