Prime Illinois hospital CEO resigns

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Otis Story Sr. resigned Nov. 7 as CEO of St. Mary’s Hospital in Kankakee, Ill.

Mr. Story had served in the role since March 2024, according to a statement shared with Becker’s on Nov. 12 by a spokesperson for Ontario, Calif.-based Prime Healthcare. He began his tenure during a “challenging time of transition for the hospital and its 550 staff members and 100 medical group clinicians,” the spokesperson said.

Prime acquired St. Mary’s and seven other Illinois hospitals from St. Louis-based Ascension on March 1.

“St. Mary’s Hospital remains dedicated to caring for the community with compassion, integrity, and excellence,” the spokesperson said. “As we enter a new chapter of growth, we’re welcoming Luis Leon as interim CEO, bringing decades of hospital leadership and a passion for community-based care.”

Mr. Leon also serves as CEO for Region VI of Prime Healthcare and as interim CEO of Resurrection Medical Center in Chicago. He was previously president of operations for Prime’s Division II for eight years, overseeing 28 hospitals across 12 states. In that role, he led strategic acquisitions and partnerships with hospitals and physicians across the U.S. and guided Prime through expanded market share while advancing quality and safety performance.

In May, Illinois Sens. Tammy Duckworth and Richard Durbin raised concerns about changes made at the hospitals since the acquisition, including the termination of obstetric and maternal care services at St. Mary’s. Prime CEO Prem Reddy, MD, said the eight hospitals were losing nearly $200 million annually at the time of the acquisition, including $14 million in losses at St. Mary’s. He wrote in his letter to the senators that obstetric services at St. Mary’s were discontinued following a drop in volume to fewer than one delivery per day and the retirement of a physician who provided nearly all inpatient obstetric care.

Recent investments at the hospital include infrastructure upgrades, new imaging and infusion equipment and expanded behavioral health services, according to the Prime statement.

“Our focus remains on continuing to deliver compassionate, high-quality care for Kankakee and its surrounding communities,” the spokesperson said.

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