The CEO of Vista Health System suddenly announced her resignation on Tuesday after serving just over a year at the hospital system, which is facing ongoing financial issues.
Vista Health System Chief Executive Officer Kim Needham made the announcement to members of the board and staff in an email on Tuesday.
She said it was after “careful consideration” that she made the “difficult decision” to resign from her position.
“Serving this organization has been one of the greatest privileges of my professional career. I am deeply grateful for the opportunity to work alongside such talented, dedicated, and compassionate individuals who remain committed to our mission and the communities we serve,” Needham said.
“Together, we have navigated challenges and celebrated successes. The commitment and resilience demonstrated by our employees, medical staff, leadership team, and Board have been inspiring, and I will always value the relationships and experiences gained during my tenure,” Needham said.
She added that she wanted to express her appreciation to the hospital system’s board of directors for their “trust and support,” as well as to “our leadership team for their partnership, to the medical staff and their gift to heal our patients, and to every employee whose dedication makes a meaningful difference each day. ”
Needham said in the announcement that she would continue to hold the organization and its people in the “highest regard.”
Her resignation will be effective August 7. She says she will continue to support Vista in a contractor role to ensure a smooth transition.
“Thank you for the opportunity to serve,” Needham said. Vista Health System did not respond to a request for comment on the matter.
Waukegan Mayor Sam Cunningham said Tuesday that he was “deeply disappointed” by the ongoing failures at Vista Medical Center East in Waukegan.
“Healthcare is a fundamental right. For decades, Vista Medical Center East has served as a vital lifeline for emergency care, medical treatment, and employment for the people of Waukegan and broader Lake County. To see this community asset decline is a devastating blow and a direct result of the corporate failure of American Healthcare Systems,” Cunningham said.
Needham served as the CEO for less than a year and a half.
She was appointed to the role in April 2025, at which time Vista’s leadership said her appointment marked a “new chapter” for the hospital and “reaffirmed commitment to the people and families who make up the vibrant community we serve.”
Prior to Needham serving in the post, Aundrea Styles served as the acting interim CEO.
Styles served in the position after Kevin Spiegel, who was appointed CEO in October 2024, left the post in March 2025.
Bianca Defilippi served as CEO prior to Spiegel after being appointed when American Healthcare Systems (AHS) purchased the hospital system in July 2023.
Vista has been struggling financially in recent years and is currently facing foreclosure due to millions of dollars in unpaid property taxes.
They also owe the City of Waukegan hundreds of thousands of dollars for water, in addition to many court judgments ordering them to pay vendors and contractors.
Vista Health System employees have faced delays in receiving their paychecks on several occasions this year due to funding issues.
Cunningham said his administration, alongside city leadership, state legislators, regional healthcare leaders and community advocates, spent the past several months actively pursuing solutions, facilitating discussions and exploring “every possible path” to keep the facility operating.”
“However, local efforts cannot overcome a corporate business model that prioritizes profit margins over human lives. Frontline healthcare workers and support staff show up every day to care for the community. They deserve reliable, guaranteed compensation for their labor, not financial uncertainty,” Cunningham said.
“Above all, local families and neighbors deserve accessible, dependable healthcare in their own backyard, because every resident’s health, safety, and well-being depend on a healthcare system that puts people over profit,” he added.