Prime Healthcare ‘breached’ promise, Rowe seeks Illinois AG investigation

KANKAKEE – A state investigation into the actions taken by Prime Healthcare regarding recent management decisions at hospitals in Kankakee and Joliet has been requested.

Kankakee County State’s Attorney Jim Rowe filed a request Wednesday with Illinois Attorney General Kwame Raoul and Debra Savage, chairperson of the Illinois Health Facilities & Services Review Board, to investigate actions taken by Prime since its takeover of these facilities.

According to transcripts, St. Mary’s Hospital was acquired by Prime at a cost of $33,030,711.

Rowe, in his request, wants the state to “investigate this breach and take any possible and appropriate action” against Prime for its “gross misrepresentations” to the state.

“Prime Healthcare has breached its promise to the HFSRB, to the residents of Illinois and to the patients it claims to service,” he said. “This should not be allowed to stand.”

Rowe stressed this action is in no way reflective of the hospital staff nor the quality of service provided by St. Mary’s Hospital staff now or in past decades.

Since formally taking ownership of St. Mary’s Hospital, a nonprofit hospital, and other facilities on March 1, Prime has eliminated the childbirth labor and delivery services in Kankakee as well as patient care managers, Rowe said.

In Joliet, Prime eliminated pediatric care.

The actions have not gone unnoticed. Demonstrations have been held protesting the loss of these services.

In an Friday afternoon email response from Prime, the company noted St. Mary’s Kankakee is centered on “ensuring quality care for all and service line changes have been made to ensure the highest quality and safety for patients.”

A spokesperson again pointed to the low volume of births at the hospital as the chief reason for the suspension of that service.

“Evidence consistently shows that low-volume services cannot reliably ensure quality care,” noting that fewer than one birth was taking place at St. Mary’s on a daily basis."

Prime also noted they have been in constant contact with regulators regarding these service line changes, have meet all applicable requirements of the HFSRB and IDPH “... and will continue to collaborate to maintain quality and community-focused care.”

Regarding St. Mary’s childbirth services, Prime contended less than 30 were taking place in Kankakee monthly, making it impractical to continue this service.

When taking over the hospitals, Prime stated no changes would occur for 18-24 months as they studied the cost of services being offered.

St. Mary’s OB services ended May 16, a timeframe of less than 50 days.

“Collectively, these actions harm seniors, pregnant women and children – and they impact the health of our entire region," Rowe said.

Rowe is alleging Prime was not being honest when it provided testimony before the health facilities board. Rowe said it was also interesting that those who provided testimony were not sworn to state their statements were truthful.

“Were they honest and forthcoming in their promises to the state board and to local officials?” he asked. “This (requested inquiry) is purely about Prime Healthcare and their intentions.”

Rowe said he will continuing pushing this issue. Rowe also wondered where Gov. J.B Pritzker has been on the issue.

He said U.S. senators have been involved.

Rowe’s request to the state is just the latest turn of events since Prime took over these facilities and began making changes.

Earlier this week, the state’s two U.S. senators, Richard Durbin and Tammy Duckworth, raised questions in a letter about Prime’s management.

The senators questioned Prime’s pledge during acquisition hearings to Illinois regulators not to make any immediate reductions in services if allowed to acquire eight Illinois hospitals.

The senators in their letter were critical of Prime’s for-profit status at many hospitals. The senators also requested the company bring back services cuts, including the cuts made in Kankakee and Joliet.

Key dates

In the Wednesday two-page letter to Raoul and Savage, Rowe highlighted several key dates and representations:

· Aug. 14, 2024 – Prime’s Application for Change of Ownership Exemption was filed with the HFSRB affirming “no changes to its scope of services or level of care are anticipated to occur with 24 months.”

· Sept. 6, 2024 – Fred Ortega, Prime Healthcare’s Corporate Director of Government Relations, testified to the HFSRB: “Prime Healthcare has also committed to continuing all services at these facilities and hopes to expand services based on community needs.”

· Dec. 17, 2024 – Health review board approves sale of nine Ascension Illinois hospitals to Prime.

· March 1, 2025 – Prime officially assumes ownership of St. Mary’s Hospital in Kankakee and Saint Joseph Medical Center in Joliet.

· April 11, 2025 – Prime eliminated community patient care managers and announces the closure of all childbirth labor and delivery services at St. Mary’s.

· April 25, 2025 – Prime eliminated all pediatric services at Saint Joseph Medical Center in Joliet.

“These actions are in direct conflict with the assurances made to the State, to local officials, and to the communities these hospitals serve,” Rowe wrote. “The public and the HFSRB were misled, and the resulting harm to critical care access – especially for vulnerable populations – is deeply concerning."

He said such misrepresentations would seem to run afoul of the Illinois Health Facilities Planning Act.

According to the Illinois Department of Public Health, the Act’s purpose is to restrain health care costs by preventing unnecessary construction or modification of health care facilities and to promote the development of a comprehensive health care delivery system that assures the availability of quality facilities, related services and equipment to the public, while simultaneously addressing community needs, accessibility and financing.

Rowe said all appropriate remedies and sanctions available under state law should be considered.

“We must ensure that such conduct is not permitted to become a model for future healthcare acquisitions in our community and state.”