The hospitals in Olympia Fields and Chicago Heights are no longer for sale, reports Crain's Chicago Business.
Employees were told on Monday, a spokesman for Franciscan St. James Health told Crain's.
"Our decision to put Franciscan St. James on the market was a painful one for us, and we are thrilled to be able to tell the community today that St. James is no longer for sale," Kevin Leahy, president and CEO of Franciscan Alliance, said in a memo to employees. "The turnaround by Franciscan St. James in the last nine months has been nothing short of miraculous, and the sisters are eager to be able to continue their ministry in the south suburbs."
Franciscan Alliance rejected one suitor, whom CEO Arnie Kimmel declined to identify.
"Once Franciscan Alliance determined that it wasn't going to be able to get together on a definite purchase agreement with the bidder, it gave them the opportunity to step back and say, well, wait a minute. That deal isn't going to work. We know that. We've got a choice," Kimmel said.
The two hospitals are now operating on a break-even basis, he said.
About 125 employees were laid off last year at the 158-bed hospital in Olympia Fields and the 312-bed hospital in Chicago Heights.