A staffing agency has ordered nearly all of its workers not to report to work at Vista Medical Center East in Waukegan after the hospital failed to pay the company for its services.
Precision Practice Management suspended all services at Vista Medical Center East, 1324 North Sheridan Road in Waukegan, except for emergency room registration services, earlier this week.
The company also suspended all services at Gateway Regional Medical Center in Granite City, Illinois. Both hospitals are owned by American Healthcare Systems (AHS).
The action is believed to be temporary and happened after the hospitals failed to provide payment for services provided.
“As a result, we are unable to continue providing most staffing services at these facilities until this issue is resolved,” Precision Practice Management said in a message to its workers, adding that they made “repeated efforts to resolve the matter.”
All employees, with the exception of those assigned to emergency room registration, were told not to report to work and not perform any work-related duties until further notice.
The suspension of services is expected to be temporary and could last up to a week while ongoing operational and funding matters are addressed.
Precision Practice Management vowed to continue to pay its affected employees and provide updates as they became available.
“We understand that this situation may create uncertainty, and we appreciate your patience, professionalism, and continued commitment during this time. Our goal is to keep everyone informed as we work through these challenges,” the company told its employees.
It is unclear how many employees Precision Practice Management provides to Vista Medical Center or what their roles are in the hospital. A request for comment from Precision Practice Management went unanswered.
Vista Health System Community Engagement and Marketing Director Deanna Cruz told Lake and McHenry County Scanner that Vista Medical Center East has not implemented any employee layoffs.
“We continue to operate at full capacity, and our services remain fully available to the patients and communities we serve,” Cruz said.
When asked for further information relating to the Precision Practice Management decision and how it could impact Vista Medical Center East, the hospital system declined to comment.
It is unclear whether any other vendors that Vista Medical Center East does business with have also stopped services due to a lack of payment.
In March and April, employees of Vista Medical Center East were not paid on time two separate times. The hospital said a delay in payroll funding caused the paychecks not to be received both times.
A lienholder has begun foreclosure proceedings in an effort to take possession of Vista Medical Center East as the hospital has not paid over $2 million in property taxes. A court hearing in the case is set for July 10.