Becker’s Hospital Review: Why Prime invested $104M in its Illinois hospitals in 1 year

In a recent interview with Becker's Hospital Review, Dr. Sunny Bhatia, President and Chief Medical Officer of Prime Healthcare, shares why Prime invested more than $104 million in its Illinois hospitals in one year, detailing the financial strategy, workforce commitment, and community-focused approach shaping the system's continued growth in the state.

Why Prime invested $104M in its Illinois hospitals in 1 year

By: Madeline Ashley | January 29, 2026

Ontario, Calif.-based Prime Healthcare is looking to deepen its Illinois footprint with an asset purchase agreement to acquire Mishawaka, Ind.-based Franciscan Alliance's Franciscan Health Olympia Fields (Ill.).

The deal, entered Jan. 16, would make the hospital Prime's ninth in Illinois, following the acquisition of eight state facilities from St. Louis-based Ascension in March 2025.

Under the proposal, Prime would take on Franciscan Health Olympia Fields, a 214-bed facility, and Specialty Physicians of Illinois, as well as commit $5 million in philanthropic contributions to Franciscan's medical education expansion. The system will also offer "substantially all employees" jobs.

Becker's connected with Sunny Bhatia, MD, president and CMO of Prime, to discuss the financial roadmap for Olympia Fields, the operational playbook behind the Illinois expansion and which markets the system intends to target next.

Question: What's the financial roadmap for Olympia Fields over the next 2-3 years, and how do you prioritize capital investments across infrastructure, technology and service line expansion?

Dr. Sunny Bhatia: Over the next several years, Prime Healthcare's approach at Olympia Fields will be deliberately phased, beginning with stabilization and foundational investments that support long-term clinical excellence, access to care, and financial sustainability. Early priorities include infrastructure and information technology investments that improve reliability, efficiency, and care coordination, while supporting strong performance in value-driven initiatives that improve outcomes and reduce total cost of care.

Over the last year, Prime invested more than $104 million in upgrades to Illinois-acquired facilities, including new cardiac catheterization and electrophysiology labs, advanced imaging equipment, surgical tools, critical infrastructure improvements, and the historic implementation of the Epic electronic medical records system. These investments strengthened cybersecurity, expanded telemedicine capabilities, and modernized operations to support long-term excellence in care.

As hospitals stabilize, capital deployment is sequenced toward enhancing the patient and caregiver experience and expanding service lines based on community needs assessments. This disciplined approach reflects Prime's long-standing experience revitalizing community hospitals by aligning clinical leadership, operational discipline, and targeted capital investment around the needs of the communities served.

Q: You've committed to hiring "substantially all employees" across multiple acquisitions. What retention strategies have been most critical in maintaining stability during rapid expansion?

Dr. Sunny Bhatia: This last year, Prime preserved nearly all 13,000 jobs following the Illinois acquisition of eight facilities and created more than 1,000 new positions by in-sourcing key support services. Prime's follow-through on the commitment to employee retention and job growth reflects our focus on supporting employees and fostering a workplace culture grounded in compassion, accountability and service to others. That commitment has been nationally recognized, with Prime Healthcare named by Newsweek as one of America's Greatest Workplaces, reflecting the strength of its people-first approach. It is Prime's ongoing effort to create an inclusive environment where individuals from all backgrounds feel valued and supported, which directly translates to improvement in the well-being of employees and the communities it serves.

Beyond employment continuity, Prime emphasizes visible leadership, open communication, and early engagement with physicians, nurses, and staff. Investments in training, leadership development, and clinical resources reinforce a shared commitment to strengthening care rather than dismantling it. When teams see their hospital being supported and their mission reaffirmed, stability and retention follow naturally.

Q: The release calls Illinois "a model for mission-driven turnarounds." What specific operational playbook from Illinois are you planning to apply to future markets?

Dr. Sunny Bhatia: Illinois reinforced Prime Healthcare's disciplined approach to stabilizing and strengthening community hospitals through early capital investment and system-wide integration. A central element of that playbook is strengthening core infrastructure and technology, most notably through the rapid rollout of Epic as a unified electronic medical record. In Chicago, four hospitals have already transitioned to Epic in record time, with the remaining conversions scheduled for completion in 2026, creating a shared clinical and operational foundation that improves care coordination, patient experience, and workforce efficiency.

Scale has also enabled Prime to in-source key services that were previously outsourced, creating jobs, improving reliability, and generating efficiencies across areas such as environmental services, food and nutrition, laboratory services, and revenue cycle operations. These efficiencies allow for early cost savings that are reinvested in frontline care, physician support, and graduate medical education.

Finally, Illinois demonstrated the importance of thoughtful service line expansion grounded in community needs assessments, including geriatric emergency department certification, geropsychiatry programs, cardiovascular investments, and ambulatory surgery centers. This combination of disciplined capital deployment, integrated technology, and locally informed growth will guide Prime's approach as it enters future markets.

Q: Beyond Illinois, which markets or regions are you targeting next for expansion, and what lessons from the Illinois rollout will shape how you enter new states?

Dr. Sunny Bhatia: Prime Healthcare is highly selective about growth. Expansion decisions are driven by mission alignment, demonstrated community need and the opportunity to preserve access to care where hospitals face financial or operational challenges.

In addition to the recently announced pending acquisition of Olympia Fields, which signifies Prime's further commitment to the Illinois market, Prime Healthcare Foundation is scheduled to complete the acquisition of [Lewiston-based] Central Maine Healthcare in Q1 of 2026, extending our mission to preserve and strengthen access to care in another region where community hospitals are essential. That transaction reflects the same criteria that guide all of Prime's growth decisions: alignment with our physician-led model, demonstrated community need, and the opportunity to make meaningful, long-term investments that stabilize and strengthen care delivery.