OSF HealthCare Reboots Some Former St. Margaret’s Health Facilities in IL, but Bankruptcy May Delay Hospital’s Revival

OSF HealthCare’s efforts to get the closed Peru hospital back up and running may be delayed by ongoing bankruptcy proceedings.

That’s according to Dr. August Querciagrossa, the CEO for OSF’s Western Region. He said it will take three to four months after acquisition of the hospital to get operations running again, reports NPR affiliate WCBU.

“It’s making me a little uncomfortable to continue to say by end of year. We want to be done and open by the end of the year. But now that asset acquisition is really out of our control with the bankruptcy courts,” he said.

The St. Margaret’s Health campus in Peru, IL, closed abruptly back in January. Hospital leadership at the time claimed ongoing financial difficulties and staffing challenges had come to a breaking point. The health care system’s Spring Valley hospital then closed in June, leaving the Illinois Valley with two fewer hospitals.

The Illinois Health Facilities and Services Review Board approved the change of ownership for the Peru hospital last month. Querciagrossia said there are still some regulatory steps remaining, but the biggest challenge remains the asset acquisition. Read more.

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