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Beleaguered St. Margaret's hospitals file for Chapter 11 bankruptcy

St. Margaret's Hospital in Peru
Provided photo
St. Margaret's Hospital in Peru

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.

Both hospitals closed with little notice earlier this year. OSF HealthCare has plans to reopen the Peru hospital, but the bankruptcy proceedings may delay the timeline to get it back up and running.

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Tim is the News Director at WCBU Peoria Public Radio.