Beleaguered St. Margaret's hospitals file for Chapter 11 bankruptcy
The now-closed Saint Margaret's hospitals in Peru and Spring Valley are filing for Chapter 11 bankruptcy.
Nearly identical petitions were filed Thursday in Chicago for each hospital. The petitions say the hospitals owe money to more than 1,000 creditors.
Outstanding liabilities and assets are both in the $10-to-$50 million range. Among other creditors, it's believed the hospitals owe at least $1 million to Blue Cross Blue Shield of Illinois, $2.5 million to the Illinois Department of Healthcare and Family Services, $2.2 million to Medical Information Technology, Inc., and $1.28 million to Stryker Orthopaedics in Bloomington.