More Than 30 Workers Laid Off After Staffing Agency Ends Contracts With Vista Medical Center Over Non-Payment

WAUKEGAN, Ill. — More than 30 employees have been laid off after a staffing agency permanently ended its contracts with Vista Medical Center East in Waukegan, citing unpaid invoices from the hospital.

Precision Practice Management announced the layoffs after terminating its agreements with Vista Medical Center East, located at 1324 N. Sheridan Road, and Gateway Regional Medical Center in Granite City. Both hospitals are owned by American Healthcare Systems (AHS).

The decision follows a temporary suspension of nearly all staffing services at both hospitals in late June after the facilities failed to pay for services already provided. At the time, Precision Practice Management continued providing emergency room registration services while attempting to resolve the payment dispute.

In a message to employees, Precision Practice Management said it had made “repeated efforts to resolve the matter” but was ultimately unable to continue working with the hospitals.

The company informed employees that, effective immediately, its operational contracts had been terminated and that affected workers were being laid off. More than 30 employees assigned to Vista Medical Center East lost their jobs as a result.

Hospital officials acknowledged the staffing changes but emphasized that patient care remains available.

Vista Health System Community Engagement and Marketing Director Deanna Cruz said the hospital continues to operate and is working to fill the staffing gap.

“We continue to operate at full capacity, and our services remain fully available to the patients and communities we serve.”

Cruz added that the hospital is actively recruiting employees to replace the positions previously filled through the staffing agency.

The layoffs come amid ongoing financial challenges facing Vista Medical Center East.

Earlier this year, employees experienced payroll delays on two separate occasions after the hospital cited funding issues. In addition, the hospital has faced foreclosure proceedings tied to more than $2 million in unpaid property taxes, raising continued concerns about its long-term financial stability.

Despite the layoffs and financial difficulties, Vista officials maintain that hospital operations and patient services remain uninterrupted while recruitment efforts continue.