WGN America may be channel of change for Tribune Co.

On Sunday night, WGN-Ch. 9 will air "Bozo's Circus: The Lost Tape," a 1971 episode that an alert archivist discovered after four decades of gathering dust.

At the same time, WGN America, the station's national cable counterpart, will beam reruns of the sitcom "How I Met Your Mother" to its 75 million subscribers across the country.

Part of Tribune Co.'s future may rest with programming decisions like that.

Poised to emerge from its lengthy bankruptcy, the Chicago-based media company is expected to enter the new year with its holdings intact, a clean balance sheet and a plan to sell everything eventually.

The expected decision to name television executive Peter Liguori as Tribune Co.'s chief executive — he was the architect of basic cable powerhouse FX's first-run success — points to unlocking the value of the 34-year-old superstation as integral to a profitable exit strategy for the new owners of Tribune Co.

A source close to the situation told the Tribune that Liguori sees WGN America as an undervalued cable network with tremendous potential, if it gets the programming investment required. Developing the channel will "absolutely be a focus" after Liguori joins the company, which could happen within weeks.

"I'm sure that's the plan," said Derek Baine, a senior media analyst with SNL Kagan. "It all comes down to how much money you're investing in programming to get the viewers."

The new owners, senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase, have made it clear that monetizing Tribune Co.'s publishing, broadcasting and other holdings after a four-year slog through Chapter 11 is a matter of time. The process will likely challenge the maxim that the whole of Tribune Co. — estimated to be worth $4.5 billion post-emergence — is more than the sum of its parts. That's especially true when one of those parts is national cable channel WGN America, a low-rated repository of Cubs games and reruns, whose upside potential may dwarf all of the other assets combined.

Broadcasting assets, including 23 television stations, WGN-AM 720, CLTV and WGN America, represent the core profit center and account for $2.85 billion of Tribune Co.'s value, according to financial adviser Lazard. Tribune's eight daily newspapers, including the Chicago Tribune, are worth $623 million, and other strategic assets, such as stakes in CareerBuilder and Food Network, are valued at $2.26 billion, according to a 2012 report by Lazard.

The value of the TV stations, including KTLA-TV in Los Angeles and WPIX-TV in New York, should benefit from an improving appetite for acquisitions, according to analysts. But WGN America, with the help of a few hit shows and some rebranding, could be the sleeping giant on the books. Turner Broadcasting's TBS, for example, has five times the audience and seven times the cash flow of WGN America and carries a distinct brand. It is worth more than twice that of the entire Tribune Co.

Liguori's success at FX Networks could well be the blueprint. After joining what was a small basic cable channel in 1998, Liguori was elevated to CEO in 2001 and transformed the network by offering original programming such as "The Shield," "Nip/Tuck" and "Rescue Me," building ratings and revenues in the process.

"You just need a couple of hit shows and then you can start building a schedule around them," Baine said. "A lot of these cable networks, you take one hit show and get people hooked on it and then you can stick another one in the time slot right behind it and start building on that."

Last year, FX had a cash flow of nearly $553 million on net revenue of more than $1 billion, making the network worth nearly $8 billion, Baine said.

WGN America is often compared with TBS to illustrate the upside, and the divergent paths the two original superstations have taken as the cable network model — a dual revenue stream of affiliate fees and advertising dollars — has evolved over the last two decades.

Both WGN and WTBS were uploaded to satellite in the late '70s, filling the programming void for distant cable systems with local baseball and "Andy Griffith" reruns. TBS became a division of Time Warner in 1996 and transformed into a full-fledged cable network, shelving old reruns for off-network sitcoms, benching the Atlanta Braves for national MLB coverage and rolling out first-run programming featuring everything from Tyler Perry to Conan O'Brien. The network dropped "superstation" and rebranded itself with slogans such as "very funny."

One advantage FX, which is part of Rupert Murdoch's News Corp., and TBS have enjoyed is the connection to a media empire with programming prowess and deep pockets.

Meanwhile, WGN has clung to the vestiges of its lower-cost superstation model, meaning cable and satellite systems can't insert local commercials and must pay copyright fees for the programming to the government. Content shifts between local and national, with Cubs baseball and Chicago news still broadcast across the country. There is a dearth of first-run programming, and the schedule is dotted with such fillers as "In the Heat of the Night" and "Walker: Texas Ranger." Even Andy Griffith remains in the mix with "Matlock," part of a block of programming to cover the "WGN Morning News," which is not broadcast nationally.

Not surprisingly, WGN America lags TBS and FX in ratings, revenue and distribution.

TBS is ranked 11th, FX is 13th and WGN America 40th in average viewership among cable networks through November, according to Nielsen.

Of the more than 114 million homes receiving cable in the U.S., TBS reaches 99.7 million, FX 97.9 million and WGN America 75 million, according to Nielsen. One of the biggest holes in WGN's coverage area is New York City, where the station has never quite found its way into the cable lineup. Nationally, TBS and FX are included in the basic packages for Dish Network and DirecTV, while WGN America is relegated to the second or third tier.

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Career night for Noah

AUBURN HILLS, Mich. — To Ben Wallace, Joakim Noah always will be the bag-carrying and doughnut-fetching rookie he was when the two were teammates for part of the 2007-08 season.

So after Noah put up a game for the ages Friday night to lead the Bulls to a 108-104 comeback victory over the Pistons, the recently-retired Wallace rose from his baseline seat at the Palace of Auburn Hills and put Noah in a headlock.

"He said I should've had more rebounds and more points," Noah said, smiling. "But he's a hater. That's why I love him. I'm a hater too."

Noah's career-high 30 points, career-high 23 rebounds and six assists were enough to rally the Bulls from 17 points down to their 16th straight victory in this series.

Noah joined Charles Barkley, Dirk Nowitzki and Kevin Garnett as the only players in the last 25 seasons to post at least 30 points, 23 rebounds and six assists in a game. It's the first time a Bull reached those levels since Charles Oakley had 35 points, 26 rebounds and seven assists on March 15, 1986.

Noah also became the first Bull to post a 30-point, 20-rebound game since Marcus Fizer did so against the Magic on April 12, 2004.

"It's crazy to have numbers like that," Noah said. "It feels great to play well and win. But we have another one (Saturday), so we just have to move on."

Noah paused and smiled.

"Unfortunately," he said.

The Bulls' defense was unfortunate early as the Pistons shot 54.1 percent in the first half to build a 17-point lead.

"The second quarter was an abomination," coach Tom Thibodeau said.

But the Bulls closed the first half with a 14-2 run to pull within 55-50.

"That was critical," Thibodeau said.

Fittingly, Noah nudged the Bulls ahead for good with an offensive rebound, putback and three-point play to snap an 82-82 tie with 8 minutes, 7 seconds remaining. Noah's offensive rebound and dish to Carlos Boozer, who scored 24 points as all five starters reached double figures, produced a left-handed dunk and seven-point lead with 3:18 left.

"He's playing with that kind of effort every night," Kirk Hinrich said. "He goes to the board every time. It's amazing to watch that intensity."

Noah posted 20 points and 17 rebounds his last game here. He also once had a 21-point, 20-rebound effort during the 2010 playoffs against the Cavaliers.

But this was special.

"He was everywhere," Thibodeau said.

And now the schedule turns. Saturday's Knicks game begins a stretch of eight straight against teams in playoff position entering Friday night. The Knicks lead the Eastern Conference.

"They're flying high," Noah said. "They played very well against Miami the other day. They're going to be rested. They're playing probably the best basketball in the NBA right now. It's on us to come in ready."

You know Noah will be.

kcjohnson@tribune.com

Twitter @kcjhoop

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Exclusive: Google to replace M&A chief

SAN FRANCISCO (Reuters) – Google Inc is replacing the head of its in-house mergers and acquisitions group, David Lawee, with one of its top lawyers, according to a person familiar with the matter.

Don Harrison, a high-ranking lawyer at Google, will replace Lawee as head of the Internet search company‘s corporate development group, which oversees mergers and acquisitions, said the source, who spoke anonymously because he was not authorized to speak publicly.

Google is also planning to create a new late-stage investment group that Lawee will oversee, the source said.

Google declined to comment. Lawee and Harrison could not immediately be reached for comment.

One of the Internet industry’s most prolific acquirers, Google has struck more than 160 deals to acquire companies and assets since 2010, according to regulatory filings. Many of Google’s most popular products, including its online maps and Android mobile software, were created by companies or are based on technology that Google acquired.

Harrison, Google’s deputy general counsel, will head up the M&A group at a time when the company is still in the process of integrating its largest acquisition, the $ 12.5 billion purchase of smartphone maker Motorola Mobility, which closed in May.

And he takes over at a time when the Internet search giant faces heightened regulatory scrutiny, with the U.S. Federal Trade Commission and the European Commission conducting antitrust investigations into Google’s business practices. Several recent Google acquisitions have undergone months of regulatory review before receiving approval.

As deputy general counsel, Harrison has been deeply involved in the company’s regulatory issues and many of its acquisitions. He joined Google more than five years ago and has completed more than 70 deals at the company, according to biographical information on the Google Ventures website.

Harrison is an adviser to Google Ventures, the company’s nearly four-year old venture division which provides funding for start-up companies.

While most of Google’s acquisitions are small and mid-sized deals that do not meet the threshold for disclosure of financial terms, Google has a massive war chest of $ 45.7 billion in cash and marketable securities to fund acquisitions.

Lawee, who took over the M&A group in 2008, has had hits and misses during his tenure. Google shut down social media company Slide one year after acquiring it for $ 179 million, for example.

The planned late-stage investment group has not been finalized, the source said. The fund might operate separately from Google Ventures, according to the source.

“Think of it as a private equity fund inside of Google,” the source said.

The company recently said it would increase the cash it allocates to Google Ventures to $ 300 million a year, up from $ 200 million, potentially helping it invest in later-stage financing rounds.

Google finished Friday’s regular trading session down 1 percent, or $ 6.92, at $ 684.21.

(Reporting By Alexei Oreskovic; editing by Carol Bishopric and Jim Loney)

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Billionaire Aldi heir dies aged 58

FRANKFURT (Reuters) – German billionaire Berthold Albrecht, heir to the Aldi supermarket chain and one of Germany‘s richest men, has died aged 58, his family announced on Friday.

Together with his brother Theo Jr, Albrecht’s fortune was estimated at $ 17.8 billion, according to Forbes. That placed them at 32 in the list of Forbes billionaires and second for Germany.

“Berthold was a fighter, and full of hope to the end,” his wife, Babette, wrote in a full-page notice published in several German newspapers.

The notice from the notoriously reclusive family said that the funeral had taken place in November, but it did not give further details of the circumstances of his death.

Berthold was the son of Aldi co-founder Theo Albrecht, who died at the age of 88 in July 2010.

After the Second World War, Theo and his brother Karl turned the small grocery store their mother operated in Essen into one of the nation’s largest food retail chains, with a focus on a limited range of goods at bargain prices.

Aldi was split into two divisions covering north and south Germany in 1960. Theo took the north and Karl the south. Karl, aged 92, is classified by Forbes as the richest man in Germany with a fortune of $ 25.4 billion.

The Aldi empire, which has estimated worldwide annual turnover of about 50 billion euros ($ 65 billion), also owns the Trader Joe’s grocery chain in the United States. In Europe it competes with the likes of Tesco, Carrefour and Metro.

Berthold worked on the board of directors at Aldi North. ($ 1 = 0.7700 euros)

(Reporting by Victoria Bryan; Editing by David Goodman)

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Justices to Take Up Generic Drug Case

WASHINGTON — The Supreme Court said on Friday that it would decide whether a pharmaceutical company should be allowed to pay a competitor millions of dollars to keep a generic copy of a best-selling drug off the market.

Stephen Crowley/The New York Times

Ralph Neas, head of the Generic Pharmaceutical Association, said the case would alter the marketing of new generics.

The case could settle a decade-long battle between federal regulators, who say the deals violate antitrust law, and the pharmaceutical industry, which contends that they are really just settlements of disputes over patents that protect the billions of dollars they pour into research and development.

Three separate federal circuit courts of appeal have ruled over the last decade that the deals were allowable. But in July a federal appeals court in Philadelphia — which covers the territory where many big drug makers are based — said the arrangements were anticompetitive.

Both sides in the case supported the petition for the Supreme Court to decide the case, each arguing that the conflicting appeals court decisions would inject uncertainty into their operations.

By keeping lower-priced generic drugs off the market, drug companies are able to charge higher prices than they otherwise could. Last year, the Congressional Budget Office estimated that a Senate bill to outlaw those payments would lower drug costs in the United States by $11 billion and would save the federal government $4.8 billion over 10 years.

Senator Charles E. Grassley, an Iowa Republican who co-sponsored the Senate bill, which never came to the floor for a vote, praised the decision.

The Federal Trade Commission first filed the suit in question in 2009. Jon Leibowitz, chairman of the F.T.C., said, “These pay-for-delay deals are win-win for the drug companies, but big losers for U.S. consumers and taxpayers.”

Generic drug makers say that the payments preserve a system that has saved American consumers hundreds of billions of dollars.

“This case could determine how an entire industry does business because it would dramatically affect the economics of each decision to introduce a new generic drug,” Ralph G. Neas, president of the Generic Pharmaceutical Association, said in a statement. “The current industry paradigm of challenging patents on branded drugs in order to bring new generics to market as soon as possible has produced $1.06 trillion in savings over the past 10 years.”

The case will review a decision by the United States Court of Appeals for the 11th Circuit, based in Atlanta, which in the spring ruled in favor of the drug makers, Watson Pharmaceuticals and Solvay Pharmaceuticals. Watson had applied for federal approval to sell a generic version of AndroGel, a testosterone replacement drug made by Solvay.

While courts have long held that paying a competitor to stay off the market creates unfair competition, the pharmaceuticals case is different because it involves patents, whose essential purpose is to prevent competition.

When a generic manufacturer seeks approval to market a copy of a brand-name drug, it also often files a lawsuit challenging a patent that the drug’s originator says prevents competition.

Last year, for the third time since 2003, the 11th Circuit upheld the agreements as long as the allegedly anticompetitive behavior that results — in this case, keeping the generic drug off the market — is the same thing that would take place if the brand-name company’s patent were upheld.

Two other federal circuit courts, the Second Circuit and the Federal Circuit, have ruled similarly. But in July, the Third Circuit Court of Appeals said that those arrangements were anticompetitive on their face and violated antitrust law.

The agreements are also affected by a peculiar condition in the law that legalized generic competition for prescription drugs. That law, known as the Hatch-Waxman Act, gives a 180-day period of exclusivity to the first generic drug maker to file for approval of a generic copy and to file a lawsuit challenging the brand-name drug’s patent.

Brand-name drug companies have taken advantage of that law, finding that they can settle the patent suit by getting the generic company to agree to stay out of the market for a period of time. Because that generic company also has exclusivity rights, no other generic companies can enter the market.

Michael A. Carrier, a professor at Rutgers School of Law-Camden, said that while there were provisions in the law under which a generic company could forfeit that exclusivity, “they really are toothless in practice.”

One wild card could still prevent the Supreme Court from definitively settling the question. In granting the petition to hear the case, the Supreme Court said that Justice Samuel A. Alito Jr. recused himself, taking no part in the consideration or decision.

That opens the possibility that a 4-4 decision could result, upholding the lower court case that went against the F.T.C. and in favor of the drug makers. But it would leave the broader question for another day.

The case is Federal Trade Commission v. Watson Pharmaceuticals et al, No. 12-416.

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Integrys Energy Services tapped to supply Chicago's electricity

The same company that heats homes in Chicago has been picked to provide the electricity that powers them.

Integrys Energy Services, a sister company to Peoples Gas, on Friday was named the city's choice to supply electricity to about 1 million Chicagoans. It's the largest such deal negotiated by a city on behalf of its residents.

The City Council is to vote on the contract Wednesday after a Monday public hearing.

Chicagoans should see discounts of 20 to 25 percent from March through June. Afterward, savings are expected to drop. Overall, the average household is expected to save $130 to $150 through May 2015, when the contract ends, according to the mayor's office.

Mayor Rahm Emanuel said Friday the deal "will put money back into the pockets of Chicago families and small businesses."

The contract calls for the elimination of power produced from coal, the largest source of greenhouse gases. About 40 percent of Chicago's electricity is from coal.

"That's a giant step toward healthier air and clean, renewable energy that supports good paying jobs in the technologies of tomorrow," said Jack Darin, executive director of the Sierra Club's Illinois chapter and a member of the advisory committee that worked on the deal.

However, the no-coal provision is largely symbolic since there is no way to know the precise origin of electricity flowing into Chicago homes.

Integrys Energy Services, a subsidiary of Chicago-based Integrys Energy Group, was chosen from eight bidders and was the only company other than Exelon-owned Constellation NewEnergy that made it to the final round.

Integrys Energy Group's board includes William Brodsky, head of the Chicago Board Options Exchange and a member of World Business Chicago, which Emanuel chairs.

The Integrys unit won the electrical aggregation contract despite Emanuel's connection to Constellation through its parent company, Exelon, which also owns Commonwealth Edison. While working at investment banking firm Wasserstein Perella & Co. after leaving the Clinton White House in 1998, Emanuel helped set up the merger that created Exelon.

Price was the determining factor, the mayor's office said.

Bidding documents, including pricing and how the contract would be structured, were not made public Friday.

In picking a price, Integrys must account for a large number of customers that will come and go. If electricity prices rise, Integrys risks losing money. Still, Integrys stands to become a dominant player in the retail electricity business and gain about $300 million in yearly revenue.

"Scale is important in this business," said Travis Miller, a utilities analyst with Chicago-based Morningstar. "The winner is immediately going to gain a huge scale advantage within the retail market."

ComEd still will be responsible for delivering electricity and fixing outages. ComEd makes its money delivering electricity, not supplying it. Customers' new bills will look like the old bills, except that the portion titled "electricity supply services" will have a new rate and include the new supplier's name.

Chicagoans can opt out and stick with ComEd or choose their own supplier like thousands of people already have.

Tribune reporter John Byrne contributed.

jwernau@tribune.com

Twitter @littlewern

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Preckwinkle blasts Emanuel, quickly backs off

Cook County Board President Toni Preckwinkle on Thursday quickly backed off a public barb she tossed at Mayor Rahm Emanuel for his crime-fighting strategy, marking the second time in a little more than three months she has toned down off-the-cuff remarks.

This time, the first-term Democrat retreated after saying the mayor and his hand-picked police superintendent, Garry McCarthy, were too focused on arrests as a solution to rising violence and not enough on improving a "miserable" public school system and beefing up youth programs.

"Clearly this mayor and this police chief have decided the way in which they are going to deal with the terrible violence that faces our community is just arrest everybody," Preckwinkle said during a question-and-answer session after delivering a Union League Club luncheon speech on her second anniversary in office. "I don't think in the long term that's going to be successful.

"We're going to have to figure out how to have interventions that are more comprehensive than just police interventions in the communities where we have the highest rates of crime. And they're almost all in African-American and Latino communities."

When Preckwinkle faced reporters minutes later, she said Emanuel is working to improve schools and youth programs. She added that her criticism of the public schools controlled by Emanuel was aimed at society as a whole and not the mayor personally.

The Emanuel flap follows Preckwinkle's remarks about former President Ronald Reagan. In late August, the blunt-talking Preckwinkle took aim at Reagan's legacy. Later she said she regretted saying he deserved "a special place in hell" for his role in the war on drugs.

At the luncheon Thursday, Preckwinkle was asked what she could do to address city violence, which has drawn national attention this year with a spike in the city's murder rate and brazen incidents like the fatal shooting of a young man at a funeral for a reputed gang member.

Preckwinkle said much of the problem results from a Chicago school system with a low high school graduation rate.

"We have contented ourselves with a miserable education system that has failed many of our children," Preckwinkle said, adding that more after-school enrichment and job-training programs were needed. "I'm talking about the kids who don't graduate, let alone the kids who graduate (who) don't get a very good education, even with a high school diploma."

Emanuel aides offered a restrained response.

"Mayor Emanuel strenuously agrees that a holistic approach is necessary to successfully address crime," Emanuel spokeswoman Sarah Hamilton said in a statement. "His multipart strategy ranges from improving early childhood education, providing a longer school day and creating re-engagement centers for youth, to delivering wraparound services, revitalizing the community policing program and working to prevent retaliatory actions by gangs.

"All of these work in tandem, but let's make no mistake, criminals deserve to be arrested," Hamilton wrote.

Emanuel and McCarthy have directed additional police resources into troubled South Side and West Side neighborhoods, combined with additional social services and community-building efforts. Emanuel also dedicated $9 million in additional funding next year for early childhood education, after-school programs and jobs, children's eye exams and programs that address domestic violence.

Reminded of those initiatives, Preckwinkle acknowledged that Emanuel is putting more city money into such programs, some of which are coordinated with the county. She said her criticism of schools wasn't directed at Emanuel, who appoints the Chicago Public Schools board and picks the system's CEO.

"This was a critique of all of us. It wasn't aimed at the mayor," said Preckwinkle, a former CPS high school history teacher.

The point, Preckwinkle said, is that education over the long run will do more to quell violence than arresting people and locking them up.

"You know unfortunately we live in a country in which we are much more willing to spend money on keeping people in prison than we are on educating them in our public schools," she said. "And that's disgraceful. It reflects badly on all of us."

She added, "I don't think we are going to arrest our way out of our violence problems."

Preckwinkle has frequently criticized a justice system that she says locks up African-American and Latino men in far greater numbers than their white counterparts, particularly for drug crimes, when studies show drugs are used in equal numbers across ethnic and racial boundaries.

<em><a href="mailto:hdardick@tribune.com">hdardick@tribune.com</a></em>

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Minecraft sells almost 4.5 million copies on Xbox 360 as other indie games continue to struggle

Big-budget games such as Halo 4 and Call of Duty: Black Ops II might brag about how they rule the Xbox 360 in terms of sales, but indie games can also compete – if they’re addictive enough and offer enough value. Take Minecraft, an indie game developed by Markus “Notch” Persson’s company Mojang. According to Mojang, Minecraft, an indie game originally made for PC and ported to the Xbox 360 seven months ago has sold 4,476,904 copies as of the end of November with 40,000 to 60,000 copies sold every week. Minecraft is an anomaly because it doesn’t boast high-definition graphics that ooze of detailed lighting effects and didn’t cost millions of dollars to make, and yet it is the third-most played game on Xbox LIVE.

According to Gamasutra’s analysis and breakdown of November’s Xbox Live Arcade sales, only three other indie games managed to break 1 million copies downloaded last month. See below for the chart.

As you can see, every other game on Xbox Live Arcade other than Castle Crashers, Fruit Ninja Kinect, Happy Wars and Counter Strike: GO isn’t seeing the same type of success Minecraft is.

The lesson here is developers should always focus on the product and the users. If the gameplay mechanics are solid, the experience is fluid and bug-free, the gamers will come.

Get more from BGR.com: Follow us on Twitter, Facebook

Gaming News Headlines – Yahoo! News

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George Zimmerman sues NBC and reporters

ORLANDO, Fla. (AP) — George Zimmerman sued NBC on Thursday, claiming he was defamed when the network edited his 911 call to police after the shooting of Trayvon Martin to make it sound like he was racist.

The former neighborhood watch volunteer filed the lawsuit seeking an undisclosed amount of money in Seminole County, outside Orlando. Also named in the complaint were three reporters covering the story for NBC or an NBC-owned television station.

The complaint said the airing of the edited call has inflicted emotional distress on Zimmerman, making him fear for his life and causing him to suffer nausea, insomnia and anxiety.

The lawsuit claims NBC edited his phone call to a dispatcher in February. In the call, Zimmerman describes following Martin in the gated community where he lived, just moments before he fatally shot the 17-year-old teen during a confrontation.

“NBC saw the death of Trayvon Martin not as a tragedy but as an opportunity to increase ratings, and so set about to create a myth that George Zimmerman was a racist and predatory villain,” the lawsuit claims.

NBC spokeswoman Kathy Kelly-Brown said the network strongly disagreed with the accusations made in the complaint.

“There was no intent to portray Mr. Zimmerman unfairly,” she said. “We intend to vigorously defend our position in court.”

Three employees of the network or its Miami affiliate lost their jobs because of the changes.

Zimmerman is charged with second-degree murder but has pleaded not guilty, claiming self-defense under Florida’s “stand your ground law.”

The call viewers heard was trimmed to suggest that Zimmerman volunteered to police, with no prompting, that Martin was black: “This guy looks like he’s up to no good. He looks black.”

But the portion of the tape that was deleted had the 911 dispatcher asking Zimmerman if the person who had raised his suspicion was “black, white or Hispanic,” to which Zimmerman responded, “He looks black.”

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Lurie Children's Hospital sees surge in patients at new Chicago building

Executives at the Ann & Robert H. Lurie Children's Hospital of Chicago expected a "bump" in patients when the $855 million hospital opened in June.

They weren't prepared for a mountain.

Since the former Children's Memorial traded its patchwork of aging buildings in Lincoln Park for a new high-rise in Streeterville on June 9, patient volume has surged, more than doubling hospital projections.

The number of patients is up about 16 percent in the first five months, according to hospital data, an increase driven by an influx of children with more acute health problems, including transplant patients, kids with heart problems and others in need of specialized care.

Revenue over that five-month period increased 12.9 percent to $222 million.

"We expected to have a new-hospital bump in (patients). We had a new-hospital mountain," said Michelle Stephenson, Lurie Children's chief patient care services officer and chief nurse executive. "We've had some months where the (number of inpatients) was 24 percent over what we expected. "

To meet the demand, the hospital hired 151 nurses to ensure full coverage, she said.

Those new hires came on top of about three dozen pediatric specialists and department heads Lurie Children's recruited in the run-up to the hospital opening.

Stephenson said the hospital has yet to determine the specific reasons behind the jump in patients, but said data shows it is drawing more children from the collar counties and downstate.

She also cited the location, adjacent to Northwestern Memorial Hospital, Northwestern University's Feinberg School of Medicine and Prentice Women's Hospital, which is connected to Lurie via an enclosed skyway.

Moving 31/2 miles south next to Prentice, which sends Lurie about a quarter of its patients, is likely a significant factor in the patient boom, said Jay Warden, a senior vice president at The Camden Group, a consulting firm.

"It used to be a challenge for moms to have a baby transferred to Children's while they had to stay at Prentice until they're discharged," Warden said. "Now it's the best of both worlds for both hospitals."

Warden said hospitals typically get a burst of new patients when they open facilities, in part because of the accompanying marketing and publicity blitz. That's not always the case with children's hospitals, which tend to serve the sickest and smallest of patients who have few other options.

He said limitations at the old hospital likely kept some patients away.

Indeed, Children's Memorial had a listed capacity of 247 beds, but with shared rooms and other factors, executives considered the hospital full at 220 patients, Stephenson said. The Lurie hospital has a capacity of 288 beds in all-private rooms, which it has come close to filling on a few occasions.

One ward that's consistently bursting at the seams is the neonatal intensive care unit, which was built to handle 44 patients but is averaging about 50. Some of the children have been bumped into shared space in the hospital's cardiac care unit, Stephenson said.

As for patients, the new facility has been a hit, with satisfaction scores up an average of 10 percent, hospital officials said.

Tina Sneed, whose 18-year-old daughter Whitney Ballard recently underwent a liver transplant at the hospital, said she's happy with the expanded rooms and new areas for parents.

She and her daughter have made several 7-hour trips from Kentucky in the last 18 months to see specialists, including overnight stays at both facilities.

Her only complaint?

"The waiting room was kind of crowded," she said. "It was nothing too bad, they just have so many (surgeries) going on at the same time we barely had room to move in there."

pfrost@tribune.com

Twitter @peterfrost

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