Centegra to end acute inpatient care at Illinois hospital as losses mount

Crystal Lake, Ill.-based Centegra Health System plans to cease acute inpatient care at its 108-bed hospital in Woodstock, Ill., in an attempt to cut costs and improve care at its two other hospitals, according to the Northwest Herald.

Centegra will shutter the Woodstock hospital's intensive care unit and end medical-surgical operations at the facility. Those services will be moved to Centegra's hospitals in McHenry and Huntley, Ill.

Although the system plans to keep the Woodstock facility's emergency department open, any patient needing inpatient or surgical care will have to be taken to a different Centegra hospital. The Woodstock hospital will keep its inpatient behavioral health program, according to the report.

"With changing reimbursements, increasing bad debt and today's uncertain healthcare climate, Centegra Health System has continuously evaluated where and how we provide services to patients," Centegra CEO Michael Eesley wrote in an employee memo obtained by the Northwest Herald. "After careful consideration, we have made the decision to shift all acute inpatient care to Centegra Hospital-McHenry and Centegra Hospital-Huntley."

Centegra ended the first three quarters of fiscal year 2017 with a $30 million operating loss, which the system partially attributed to higher operating costs associated with the opening of its hospital in Huntley and a rise in uncompensated care. In a May 3 filing with Fitch Ratings, Centegra officials projected the system's financial losses could climb to $40 million by June 30, according to the report.

The system is expected to save $15 million annually by ceasing acute inpatient care at its Woodstock hospital and shifting those services to its other facilities. The changes, which are slated to occur Aug. 14, require approval from the Illinois Health Facilities and Services Review Board, according to the report.

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