Freeport, Ill.-based FHN has withdrawn from a joint plan with Beloit (Wis.) Health System to build a 10-bed microhospital in Roscoe, Ill., citing financial challenges and anticipated reimbursement cuts stemming from the One Big Beautiful Bill Act.
The two health systems in July submitted their proposal for the NorthPointe Neighborhood Hospital, which aims to expand access to inpatient and emergency services in eastern Winnebago County. The Illinois Health Facilities and Services Review Board has deferred consideration of the proposal — originally scheduled for Sept. 25 — to a later date.
“This was a strategic and financial decision to prioritize our focus and limited resources in the face of industry financial challenges in our local communities,” FHN President and CEO Mark Gridley said in a Sept. 22 news release. “The neighborhood hospital makes sense and could have financial benefit for FHN, but recent reimbursement reductions anticipated from the federal legislation approved this July will present further financial challenges that necessitate a focus on local priorities.”
FHN said it still supports Beloit’s pursuit of the project and called it “an important project worthy of consideration” by state regulators.
Beloit Health System plans to move forward with the project despite FHN’s exit.
“While FHN’s withdrawal affects our timeline, it does not diminish our commitment to bringing quality healthcare access to our community,” Tim McKevett, president and CEO of the health system, told local outlet WIFR. “We are disappointed in FHN’s decision but appreciate their endorsement.”
The proposed microhospital would include 46,000 square feet of inpatient and outpatient space, 10 acute care beds, emergency department bays, operating and procedure rooms, obstetric services, imaging, and other ancillary services. It was designed to address recent inpatient bed reductions in the Rockford area and keep care closer to home for Roscoe-area residents.
Becker’s has reached out to Beloit Health System and will update this story as more information becomes available.
