Illinois hospital to close

Spring Valley, Ill.-based St. Margaret's Health will close on June 16 after running out of resources to continue operations, reported June 12.

The closure includes all operations — hospital, clinics and other facilities — at both St. Margaret's Health and St. Margaret's Health-Peru (Ill.).

In a May 17 internal memo, St. Margaret's President and CEO Tim Muntz said the hospital "continues to be in severe financial distress" and has requested emergency funding from the state of Illinois, according to the publication. "If we do not receive the funding, St. Margaret's may need to consider curtailing hospital operations, or even closing, as early as Friday, June 16, 2023." 

A state budget passed without any assistance for the hospital after concerns that St. Margaret's Health would use state funding for payroll needs, according to the report.

Peoria, Ill.-based OSF HealthCare, a 15-hospital system operated by The Sisters of the Third Order of St. Francis in Peoria, Ill., said it is in the process of acquiring "some" of St. Margaret's assets, including the hospital in Peru, which closed in late January.

"We, like many in the community, are saddened by this news impacting Illinois Valley residents who are facing an immediate need for medical care," OSF said in a June 9 news release. "We are determining how best to provide necessary services to the Illinois Valley, but this process, along with the necessary regulatory approvals, takes time."

OSF has completed phase one of its purchase of the Midtown Plaza complex, Midtown Health Center and Granville Clinic in the area and aims to hire, train and establish its networks to reopen as soon as possible.

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