Review Board Denies Centegra, Mercy Proposals

In the second time in recent months, the Illinois Health Facilities and Service Review Board denied proposals that would move forward plans for a new hospital in the area. 

Supporters and representatives of the proposed Mercy Health Care Hospital in Crystal Lake and Centegra Hospital in Huntley appeared today for a hearing in Bolingbrook before the state's review board. 

In a 6-2 vote, the state board denied Mercy’s plans to build a 70-bed acute-care facility in Crystal Lake. The health-care provider had scaled down its original proposal from a 128-bed hospital after the board denied its previous plan in June. 

And although Centegra’s proposal fared slightly better, with the board voting 4-4, a tie meant a loss for the healthcare group. Five votes were needed for approval of Centegra’s plan for a 128-bed hospital in Huntley.

The review board also denied a similar proposals by Centegra in June. 

Mercy’s proposal

Before the hearing began, Sen. Pamela Althoff, R-McHenry, cautioned review board members to ensure their process was “predictable, transparent and consistent,” to avoid arbitrary action that would further undermine public confidence in government.

Althoff joined four others who expressed support for Mercy’s proposal, while 21 hearing attendees, including members of the general public and representatives of Advocate Good Shepherd Hospital, Sherman Hospital in Elgin, Centegra Health System and Alexian Brothers, expressed opposition.

Mercy executives made their case before the board, citing the healthcare provider’s commitment to serving the needy and uninsured and the projected population growth in the area, as well as their proposal’s compliance with the state criteria for approval of new hospitals.

Vice president Rich Gruber also downplayed claims by area healthcare executives that Mercy’s proposed hospital would sway paying patients away from their facilities.

But in the end, board members were not convinced of the need for a new Mercy Health Care Hospital in Crystal Lake.

Ex-officio board member David Cavalho, who advises the health care review board but does not vote on proposed health care facilities, summed up the board’s deliberations in a couple of sentences.

“It’s not bingo-bango, an application is turned down,” Cavalho said. “It’s a certificate of need process, not a certificate of want process.”

Explaining his vote to deny Mercy’s application, board chairman Dale Galassie echoed Cavalho’s sentiments.

“At another point in time, at another location, this could make sense,” Galassie said.

Centegra steps up to the tee

Twelve attendees spoke in opposition to Centegra’s proposal to build a 128-bed acute-care facility in Huntley and Galassie said 20 others had stated their opposition but did not wish to speak at the hearing.

Among opponents to the proposal were representatives of Advocate Good Shepherd, Mercy, St. Alexis, Advocate in Elgin and Sherman Hospital.

Nancy Griffith, a resident of Sun City in Huntley, said she had “personally experienced quality care” at Sherman Hospital and didn’t see the need for Centegra’s proposed facility in Huntley.

She said she is puzzled when fellow residents of Sun City claim it’s an inconvenience to drive to Sherman Hospital, yet are willing to “drive all the way to Randall Road to save a few pennies.”

But the number of supporters for Centegra’s proposal outweighed its detractors, with 25 people speaking in favor of the plan — including Huntley’s mayor, village manager and fire chief, the superintendent of School District 158, a construction industry executive and members of the general public. Twenty-five more people documented their support but did not speak at the hearing, including a busload of senior citizens from Sun City in Huntley.

And Mike Easley, CEO of Centegra Health Systems, said the community had sent 16,000 letters of support for the project.

Just as Mercy had done earlier in the day, Centegra executives presented their case for building a new hospital in McHenry County. 

And, just as in Mercy’s case, the board turned the proposal down.

Explaining his negative vote, board member James Burden said he was reluctant to endorse the proposal “at this time” because he felt a new hospital in Huntley could negatively impact other area hospitals.

“I’m more fond of the location (than that of Mercy’s), but it’s too early,” Burden said. “The need is not so great.

Board member Kathy Olson said her “no” vote was the hardest decision she had made while serving on the Illinois Health Facilities and Service Review Board. But she didn’t feel Centegra had fully met the board’s criteria for approval of a new facility in Huntley.

“I need to play by the rules,” Olson said of her decision.

What’s next?

Mercy vice president Rich Gruber said he was disappointed by the board’s decision, although he still believes in the project.

“We may come back again,” Gruber said. “But we will have to re-evaluate. I won’t criticize the board members, but I am a bit unnerved with the tone of some of the public comments.”

Justice Alan Greiman, who voted in favor of both proposals, said he has seen tie votes, as in the case of Centegra, before.

“They will just have to move on and try again,” Greiman said.