Franciscan Alliance announced Friday it will sell Franciscan Health Olympia Fields to Prime Healthcare.
The 214-bed Olympia Fields hospital is part of Franciscan Health, a nonprofit Catholic health care network that mostly serves Indiana. Franciscan Health Olympia Fields is the alliance’s only Illinois hospital, according to a news release.
“Franciscan Health Olympia Fields has a legacy of service, and we believe Prime Healthcare is uniquely positioned to carry that mission forward,” Frank J. McHugh, interim president and CEO of Franciscan Health Olympia Fields, said in a news release. “Prime’s proven ability to strengthen hospitals while honoring values-based care gives us hope and confidence in the future of access and quality for the South Suburbs.”
The parties said the proposed purchase was still subject to the approval of the Illinois Health Facilities and Services Review Board, as well as other regulatory approvals. The network and hospital will continue to operate independently until the sale closes.
Prime Healthcare is a for-profit health care network headquartered in California that includes 51 hospitals in 14 states.
Prime Healthcare expanded into Illinois when it purchased eight Illinois hospitals from another Catholic health care system, Ascension, in a deal that closed in March 2025.
Under that sale, six of the eight Ascension hospitals switched from nonprofit to for-profit, while St. Mary’s Hospital in Kankakee and St. Francis Hospital in Evanston remained nonprofits under the Prime Healthcare Foundation, Prime Healthcare’s nonprofit arm.
The announcement of the Franciscan Health Olympia Fields purchase did not specify whether the hospital will remain a nonprofit, or be converted to a for-profit operation. Communications representatives for Prime Healthcare did not immediately respond to requests for clarification.
Prime has focused on acquiring hospitals in financial distress.
“Our agreement with Franciscan Alliance reflects Prime Healthcare’s enduring mission to save, strengthen and invest in community hospitals while honoring Franciscan’s deep commitment to serving the poor and vulnerable,” Sunny Bhatia, president and chief medical officer of Prime Healthcare, said in a news release.
Under the purchase agreement, Prime Healthcare will also incorporate Specialty Physicians of Illinois, LLC, according to the news release.
Managing chronic disease
Franciscan Health announced Tuesday it will offer a program intended to help manage chronic disease in Olympia Fields and in Michigan City, Indiana.
Through the Produce Prescription Program, food-insecure participants with chronic conditions like diabetes or heart disease will be eligible to receive vouchers for fresh fruit and vegetables for six months. Participants will be required to complete a free six-week cooking course, the announcement said.
People interested in participating in the Olympia Heights program can contact Shelby Beasley at Shelby.Beasley@franciscanalliance.org or 219-228-1037, Franciscan Health said.
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