Vista Medical Center East in Waukegan has not paid over $2 million in property taxes, causing liens to be put on the property, and the hospital system was also recently downgraded to a “D” rating in a health report.
Lake County Clerk Anthony Vega told Lake and McHenry County Scanner that a county tax sale, which is where buyers can place bids to purchase delinquent property taxes, was held last week.
American Healthcare Systems (AHS), a private equity group that owns Vista Medical Center, failed to pay the $896,416.52 in property taxes it owed to Lake County for 2024.
No buyers purchased the 2024 property taxes, which were payable this year, for Vista Medical Center East, located at 1324 North Sheridan Road in Waukegan.
Vega said that means the County of Lake Trustee, which is his office, now becomes a lien holder on the property.
The county has become the second lienholder on the property after the hospital system also failed to pay its 2023 property taxes, which were due in 2024 in the amount of $931,364.02, and a tax buyer purchased them during a tax sale in November 2024, Vega said.
The tax buyer who purchased the 2023 property taxes did not choose to purchase the 2024 delinquent property taxes, which is why they went to a tax sale last week.
When a tax buyer purchases delinquent taxes, that money is paid directly to the county, which is then able to distribute it to the taxing bodies, such as schools, cities, park districts, water districts and others.
Since no tax buyer purchased Vista’s delinquent taxes for 2024, there is no money to be sent out to the taxing bodies, who are now shorted due to Vista’s failure to pay, because the lienholder is the county, Vega said.
Vista has not paid its back taxes to the 2023 tax buyer or to the county for 2024 as of Thursday, Vega said.
Vista initially had a due date of this month to pay the 2023 tax buyer but the tax buyer requested the due date to be delayed until June 12, 2026.
Vega said he does not know the reason why the tax buyer chose to do so but said it typically happens when the tax buyer is in ongoing conversations with the delinquent property owner or wants to continue accruing interest.
Vista has until June 15, 2028, to pay the 2024 delinquent taxes to the county.
The 2023 tax buyer is currently owed approximately $1.1 million and Lake County is owed $1,028,567.81 for 2024, which includes fees and interest. The amount owed accrues 9% interest every six months.
Both lienholders — “County of Lake Trustee” and the 2023 tax buyer — could go to court and obtain the tax deed if Vista fails to pay the money owed following the redemption periods.
Last week, The Leapfrog Group released its fall 2025 hospital safety grade report for hospitals across the United States.
The Leapfrog Group focuses on accidents, errors, injuries and infections that harm or kill patients in hospitals and is updated twice a year in the fall and spring, offering the public a “reliable, independent assessment of hospital safety,” according to the organization.
The grades are determined by a public, peer-reviewed methodology, calculated by patient safety experts under the guidance of a National Expert Panel.
While most hospitals throughout the northern Chicago suburbs saw high ratings, Vista Medical Center East received a “D” rating.
The rating was a decrease from the last report from The Leapfrog Group, which previously gave the hospital a “C” rating through all of 2023, 2024 and the spring of 2025.
The latest report showed Vista’s practices to prevent errors — such as safe medication administration, handwashing, communication about medicines and communication about discharge — were “worse than average.”
The report also showed Vista’s staff ratings — such as specially trained doctors care for ICU patients, communication with doctors and nurses, and responsiveness of hospital staff — were also “worse than average.”
The report additionally showed low scores for safety problems and problems with surgery.
“Everyone deserves world-class health care — regardless of where they happen to live. When financial obligations go unmet, patient services and safety are at risk. Calling attention to this is necessary because a community’s health is on the line,” Lake County Coroner Jennifer Banek, who is a nurse anesthetist who previously worked at the hospital, told Lake and McHenry County Scanner.
Banek has been sounding the alarm since early 2024 about issues with Vista Medical Center East, which was purchased by AHS in 2023.
The hospital’s Level 2 trauma designation was temporarily revoked after a state and federal investigation into issues at the hospital early last year. In January, a female patient at Vista was found dead on the rooftop after leaving her patient room, walking out an exit and freezing to death.
The hospital in September announced it was shutting down its child labor and delivery services effective October 28 due to millions of dollars in losses each year.
A town hall, sponsored by Live Well Lake County, is set for 7-8:30 p.m. on December 3 at College of Lake County Waukegan Campus in the Eleanor Murkey Conference Room.
The event, moderated by Lake County Board Chair Sandy Hart, will be for a “vital conversation” between community leaders, healthcare professionals and residents about the future of hospital care in Waukegan and to discuss Vista Medical Center East.