Waukegan Hospital Faces Uncertain Future Amid Financial Woes

Vista Medical Center East, the city's only hospital, risks losing its property over $2.2 million in unpaid taxes

Mar. 16, 2026 at 3:10pm

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Vista Health Systems, the owner of Vista Medical Center East in Waukegan, Illinois, is facing a dire financial situation with over $2 million in unpaid property taxes. The company that purchased the delinquent 2023 taxes is now petitioning the court to take ownership of the hospital property, potentially leaving Vista as a tenant required to pay rent. The hospital also owes the city of Waukegan $366,000 in unpaid water bills, adding to its financial troubles.

Why it matters

The potential loss of Vista Medical Center East, Waukegan's only hospital, would be a significant blow to the community's access to healthcare. The hospital's financial woes raise concerns about the long-term viability of the facility and the impact it could have on the city's residents, who rely on the hospital for essential medical services.

The details

Vista Health Systems owes more than $1.1 million in 2023 property taxes and slightly over $1 million in 2024 taxes. FNA DZ, a company that purchases delinquent property taxes, bought the unpaid 2023 taxes and is now petitioning the court to grant it ownership of the property. If successful, Vista would become a tenant required to pay rent to FNA. The city of Waukegan is also owed $366,000 in unpaid water bills by the hospital.

  • Vista owes more than $1.1 million in 2023 property taxes due nearly two years ago.
  • Vista owes slightly more than $1 million in 2024 taxes payable last year.
  • FNA DZ purchased the unpaid 2023 taxes, which remain unpaid.
  • Vista has until June 12 to pay the delinquent 2023 taxes.
  • The Lake County Circuit Court scheduled a hearing for July 10 to determine the future of the hospital property if the 2023 taxes remain unpaid.

The players

Vista Health Systems

The owner of Vista Medical Center East, Waukegan's only hospital, which is facing financial difficulties and the potential loss of its property.

FNA DZ

A company that purchases delinquent property taxes as an investment, and has purchased the unpaid 2023 taxes on the Vista Medical Center East property.

Anthony Vega

The Lake County Clerk, who provided information about the unpaid taxes and the potential transfer of ownership of the hospital property.

Sam Cunningham

The Mayor of Waukegan, who is committed to working with hospital leadership and community partners to help the hospital remain viable.

Lynn Florian

The 8th Ward Alderman in Waukegan, who would like to see a not-for-profit organization take ownership of Vista Medical Center East rather than the current for-profit owner.

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What they’re saying

“Access to reliable, high-quality healthcare in Waukegan is vital to the well-being of our city. I remain fully committed to advocating for the resources, partnerships, and improvements necessary to strengthen and restore confidence in our local hospital.”

— Sam Cunningham, Mayor of Waukegan

“I am extremely proud and grateful to the employees who continue to do their best to provide good care to our community. I hope AHS does the right thing and pays their taxes and all their other liabilities that are outstanding to the city and others.”

— Lynn Florian, 8th Ward Alderman, Waukegan

What’s next

The Lake County Circuit Court will hold a hearing on July 10 to determine the future of the hospital property if the 2023 taxes remain unpaid, which could result in Vista becoming a tenant required to pay rent to the new property owner.

The takeaway

The financial troubles facing Vista Medical Center East highlight the challenges that community hospitals can face, and the importance of ensuring their long-term viability to maintain access to essential healthcare services for local residents. The situation in Waukegan underscores the need for collaborative efforts between hospital leadership, local government, and community partners to find sustainable solutions.