Saint Margaret's Health is asking a federal bankruptcy judge to allow the sale of its closed hospital in Peru to move forward.
Peoria-based OSF HealthCare wants to buy the Peru campus and its assets to reopen it as a second campus of OSF Saint Elizabeth Medical Center in Ottawa. The $38 million transaction would also include some items from another shuttered hospital in Spring Valley. OSF HealthCare is not buying that facility.
The hospital's creditors can object to the sale. The largest is Spring Valley City Bank, which is owed nearly $27 million.
OSF leadership has said they want to reopen the Peru hospital by year-end, but that's dependent on the bankruptcy process. The LaSalle-Peru and Spring Valley communities were left without hospitals after the closure of Peru in January and Spring Valley in June.
A hearing is set for Wednesday in Chicago.
