Report: Centegra, Mercy Plans Don't Meet State Criteria

A review of Centegra Health System’s and Mercy Health System’s application for new hospitals found both failed to meet the state requirements, according to a report released on the Illinois Health Facilities and Services Review Board on Tuesday.

The review board is slated to hear the Certificate of Need applications of both health systems on June 28; the two reports, one for each Certificate of Need, summarizes the applications.

Each application is similar: Centegra wants to build a 128-bed hospital on its Haligus Road campus in Huntley, while Mercy wants to build a 128-bed hospital on Three Oaks Road in Crystal Lake.

However, the reports found there is not enough need to warrant a hospital with 128 beds in the southern portion of McHenry County.

According to the report, “the May 2011 Update to the Inventory of Health Care Facilities and Services and Need Determination shows a calculated need for 83 medical surgical beds, eight intensive care beds, and 27 obstetric beds in the A-10 planning area.” However, the hospitals each propose an additional 17 beds.

“The state agency finds the proposed project does not appear to be in conformation with the need for the project,” the reports each state.

Additionally, there are six hospitals within 30 minutes of the proposed sites, the report stated. Two of those six, Advocate Good Shepherd Hospital in Barrington and Provena Saint Joseph Hospital in Elgin, “exceed the target occupancy for medical surgical beds … all hospitals exceed the target occupancy for intensive care beds,” according to the report.

One hospital, St. Alexius Medical Center, exceeds the target occupancy for obstetric beds, the report stated.

Centegra’s and Mercy’s CON applications stated their projections of occupancy are based on referrals from other providers, the report stated. However, “it appears the proposed project(s) will have an adverse effect on other area providers,” it stated.