The University of Illinois is looking to buy a Southwest Side clinic previously affiliated with Mercy Hospital & Medical Center as part of a government-funded, $15 million project.

The building at 5525 S. Pulaski is expected to sell for nearly $5 million. Trinity Health, which still owns three-hospital Loyola Medicine, in June sold Mercy Hospital in Bronzeville to Insight Chicago for $1.

The University of Illinois Health, in collaboration with its own Mile Square Health Center and Alivio Medical Center, is looking to fill the void left by the now-closed Mercy Medical Facility on Pulaski.

The group plans to transform the three-story, 31,000-square-foot clinic into a primary and specialty care center, “bringing much needed advanced diagnostics and greater care integration to an under-resourced community,” according to a proposal submitted to the Illinois Department of Healthcare & Family Services. 

Additional project costs will stem from building upgrades, diagnostic equipment and care coordination, according to University of Illinois System interim CFO Paul Ellinger, who presented the item at a Board of Trustees subcommittee meeting this week. The full board will vote on the purchase at its meeting next Thursday.  

“This area in West Elsdon and Gage Park is medically underserved,” Ellinger said during the meeting, adding that about 18% of patients live at or below the poverty level and the majority identify as a racial or ethnic minority. 

The center aims to support up to 30,000 patients in the first two years of operation. Plans call for it to open as soon as December. 

“A 10-year pro forma provided to my office indicates a positive cash flow,” Ellinger continued. “After the initial startup phase, my office will continue to work with the clinic and monitor the cash flows and performance.”

Revenue from the hospital and health care network makes up about 20% of the university system’s operating budget. 

The project is one of nine that has been awarded funding from HFS to help health care providers transform in an evolving industry. With support from federal matching funds, the state is authorized to invest up to $150 million in “Healthcare Transformation Collaboratives” each fiscal year.