Politics & Government

Hospitals Opposing Centegra, Mercy Raise New Argument

Hospitals ask the state board reviewing applications for the hospitals delay decision.

A lawyer for three area hospitals opposing applications to a state review board to build vying hospitals is asking the board to postpone a decision at its upcoming meeting.

A new argument raised by the hospitals centers around a piece of legislation passed in 2009 following two incidents of corruption surrounding the Illinois Health Facilities and Review Board.

The Illinois Health Facilities Planning Act creates a Center for Comprehensive Health Planning, which would be a separate body from the board whose mission would be to develop a master plan for health care, analyze Certificate of Need applications and determine how those application fit into a master health care plan, attorney Joe Ourth said. Ourth, a partner at the law firm of Arnstein & Lehr LLP, filed a letter with the board’s chairman Tuesday.

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While the Center has not been created, attorneys for Sherman Hospital, in Elgin, Advocate Good Shepherd Hospital in Barrington and St. Alexius Hospital in Hoffman Estates argue the board should delay a decision until that new body is established.

“The hospitals believe that a comprehensive plan would provide much-needed assistance to the Review Board by analyzing the complex information related to the decision to establish new hospitals,” Ourth said.

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Centegra filed a CON in December for a new hospital in Huntley while Mercy filed its own CON a few days later for a new hospital in Crystal Lake. The board is considering both applications at its June 28 meeting.

The hospitals Ourth represents believe the law calls for a comprehensive state plan that would provide expert, independent analysis to the review board to assist in determining whether new hospitals are really needed, he said. The plan would measure, for example, projected population growth and the regional implications of building a new hospital. It would also consider long-term health care trends, like new health care reforms, he said.

Mercy was swift to issue a response to the three hospitals’ letter of objection.

“The action by the three hospital systems to request a delay in consideration of our hospital project was expected and is frankly a bit disingenuous,” said Rich Gruber, Vice President of Mercy Health System, in a written statement.

“Advocate Good Shepherd and Sherman Hospital are in active merger discussions, seeking to protect their markets and extend Advocate’s already dominant market position in Chicago’s suburbs,” he said. “Alexian Brothers is also in merger discussions and shares similar motivations.  It is time for the projects under consideration to go forward under the rules of the game that exist today.”

Centegra issued the following statement from Susan Milford, Senior Vice President of Strategic Planning:

“The comprehensive guidelines and procedures used by the Illinois Health Facilities and Services Review Board have been established to ensure new health services meet the needs of the population," Milford said. "We are confident that this tactic being employed by the opposition is not in the best interest of the growing community in southern McHenry and northern Kane counties. The state review board is fully capable of making a decision on our project and we look forward to our first meeting with them at the end of the month.”


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