OSF gets approval to operate Peru hospital

OSF HealthCare still does not own the Peru hospital – a sale is pending – but the healthcare network received the OK to reopen the hospital.

Thursday, the Illinois Health Facilities and Services Review Board approved a certificate of exemption application filed by OSF HealthCare for a change in ownership of St. Margaret’s Health-Peru, formerly Illinois Valley Community Hospital.

August Querciagrossa, CEO, Western Region, OSF HealthCare said there’s still more to do before the hospital can reopen but was happy with the decision made by the Illinois Health and Services Review Board.

“We’re extremely pleased with the outcome (Thursday), one step forward. We have a lot more steps to complete,” Querciagrossa said. “Receiving the Peru Hospital asset from St. Margaret’s is really the next step. So, actively working on that and we’ll keep the community posted.”

OSF has said the Peru location is expected to open with emergency care and other inpatient services following completion of the sale of assets from St. Margaret’s Health to OSF, and after all regulatory approvals are received and necessary on-site preparations are completed.

We have learned since then that St. Margaret’s organization is considering options, including bankruptcy, that will impact our timeline. At that point it will be out of OSF’s control and in the hands of a bankruptcy court. We will be prepared to close the transaction and after that operationalize the hospital as soon as we are able to receive the asset from St. Margaret’s

—  Michael Henderson, OSF HealthCare Senior Corporate Counsel

Mayor Ken Kolowski said he was “extremely pleased” with Thursday’s ruling.

“This is just another step in restoring access to healthcare, not only for Peru, but for the entire Illinois Valley region,” Kolowski said. “Hopefully this ruling will speed up the process of getting healthcare up and running by late fall.”

The Peru hospital has been closed since January and the Illinois Valley as a whole has been without a nearby hospital (OSF St. Elizabeth Medical Center in Ottawa is closest) since the Spring Valley hospital was closed in June.

State Rep. Lance Yednock, D–Ottawa, spoke before the certificate of exemption was approved, and decried the closure of two hospitals in the Illinois Valley.

“The Illinois Valley region has suffered the closure of two hospitals serving 100,000 plus residents in the span of six months,” Yednock said. “That has a left gaping hole in every aspect of healthcare for our constituents.”

Querciagrossa, ahead of Thursday’s decision, said OSF intends to reopen the facility as quickly as possible.

“We are excited to move forward with our preparation to open this new OSF campus as quickly as possible,” Querciagrossa said. “Our goal is to preserve and sustain access to high quality, local health care for the residents of the Illinois Valley.

“Our Ministry is pleased to welcome so many former St. Margaret’s Health employees as new OSF Mission Partners,” he said. “They know these communities so well and will help OSF going forward in continuing to serve the Illinois Valley with the greatest care and love.”

St. Margaret’s Health had announced the closures citing financial strains common among rural hospitals, which were worsened by the pandemic and the resulting shortage of healthcare workers, as well as a computer hack that crippled billing.

The twin closures set off an array of worries headaches for patients in the west end of La Salle County and eastern Bureau County – many patients still are waiting to learn when and where their primary care providers will reopen – and lawmakers pledged to facilitate the regulatory process to get the Peru hospital open as soon as possible.

Michael Henderson, with OSF HealthCare, said the completion of the Peru hospital sale is tentatively slated for the end of August, but factors OSF HealthCare officials can’t control could put the purchase on hold.

“We have learned since then that St. Margaret’s organization is considering options, including bankruptcy, that will impact our timeline,” Henderson said. “At that point it will be out of OSF’s control and in the hands of a bankruptcy court. We will be prepared to close the transaction and after that operationalize the hospital as soon as we are able to receive the asset from St. Margaret’s.”