On Chicago’s West Side, Loretto Hospital is trying to crawl out from under a cloud of scandal. New CEO Tesa Anewishki is the public face of that effort, tasked with patching up a badly frayed relationship with the Austin neighborhood after years of controversy. Her pitch to residents is straightforward: outside oversight of money and decision-making, a rebuilt leadership team, and visible community services that prove the hospital can be trusted again.
In a recent ChicagoNOW segment, Anewishki laid out her plans to reboot the hospital’s image and operations, stressing transparency and a tighter focus on Austin residents, according to FOX 32 Chicago. She said her team is concentrating on concrete steps, not just reassuring language, and pointed to a slate of community-facing programs meant to show neighbors that change is happening right now, not somewhere down the line.
How The Trust Gap Opened
Loretto’s troubles stretch back to a 2021 vaccine controversy and then deepened with pointed questions about its finances. Federal prosecutors have alleged a scheme that used patient data to submit fake COVID-19 testing claims and seek hundreds of millions in federal reimbursements, as reported by WBEZ. Separate local reporting described earlier embezzlement allegations tied to roughly $15 million in diverted funds, per CBS Chicago.
Data Breach And Funding Squeeze
The hits did not stop with criminal allegations. In February 2025, patients were warned their records may have been exposed in a data breach, according to a legal notice carried by PR Newswire. At the same time, hospital leaders say the nonprofit is operating with almost no financial cushion and is juggling day-to-day gaps in funding, per statements on the hospital’s website. Those twin problems, anxiety over privacy and a razor-thin budget, help explain why rebuilding trust is now an urgent operational issue as much as a public relations one.
Reforms And Community Outreach
Executives point to internal changes as proof that this is more than a cosmetic refresh. The hospital has assembled a new executive team that includes fresh finance and compliance leadership, launched independent audits, expanded staff ethics training, and set up an external ethics board, according to Becker’s Hospital Review. Loretto has also added front-line services such as a Women’s Wellness Center and a hospital-based grocery program.
To show neighbors something they can literally walk up to, the hospital has leaned on visible community efforts, including a free farmers market and a 24/7 “community cupboard” of food and essentials, according to FOX 32 Chicago. Leaders say those projects are meant to deliver quick, tangible benefits while the slower work of reforming governance and oversight plays out in the background.
Legal Fallout
The courtroom drama is still unfolding. A multi-count federal indictment alleges that false COVID testing claims were submitted using patient information, with reimbursements sought from government programs, as detailed by the Chicago Sun-Times. Some co-defendants have been arrested while others remain at large, and investigators are still chasing seized assets and records, per WBEZ. It is not yet clear whether any recovered money would meaningfully shore up Loretto’s finances or simply complicate the balance sheet.
What To Watch Next
Watchdogs and neighborhood advocates say the real proof will come on paper. They want to see independent audits, clear contracts, and robust compliance systems, all made public. Earlier investigations helped push Loretto into the spotlight and led to leadership changes, according to Block Club Chicago. City officials, private funders, and community groups are expected to scrutinize budgets, audit outcomes, and vendor agreements for signs that reforms are sticking.
For patients on the West Side, though, the metric is simpler. If primary care and emergency services stay open, stable, and staffed, that will speak louder than any press conference. Anewishki says the hospital is committed to measurable steps that can be tracked and verified, while regulators and local leaders have made clear they will be grading progress based on documents, oversight, and patient protections, not just speeches.
For background on the indictments and prior reporting, see background on the indictments.
