State’s Attorney’s office, Prime Healthcare in talks on possible settlement over latest court filing

KANKAKEE – Lawyers for Kankakee County and Prime Healthcare told a judge the two sides are working on a possible settlement regarding the latest filing against the owner of St. Mary’s Hospital in Kankakee.

During an initial hearing presided over by Circuit Judge Lindsay Parkhurst on Monday, Kankakee County State’s Attorney Jim Rowe asked for 30 days for the two sides to work on a settlement.

Parkhurst granted the request.

“We were set at this time to argue for a temporary restraining order, but the two sides had conversations over the weekend. They agreed they would not discontinue any service for the next 30 days,” Rowe said.

“So we are asking the court for 30 days for the opportunity to talk,” Rowe said.

Christopher Grohman, of Benesch Law in Chicago, said they were in agreement. Benesch represents Prime Healthcare.

The two sides will be back in court July 21 for a status of settlement.

Rowe said if there is no settlement, the state will move forward with seeking the temporary restraining order.

“Today’s agreement stops the bleed; Prime has agreed to not discontinue any categories of service over the next 30 days while the parties meet and see whether our concerns can be resolved,” Rowe said after the hearing.

In the complaint filed Wednesday, Rowe argued that Prime Healthcare was not being honest when it provided testimony before the health facilities board regarding Prime Healthcare’s acquiring St. Mary’s and seven other hospitals from Ascension.

That public hearing was held last September in Kankakee by the Illinois Health Facilities and Services Review Board.

During that hearing, Fred Ortega, corporate director of public relations for Prime Healthcare, affirmed in his statement to the board, “Prime Healthcare has committed to continuing all services at these facilities and hopes to expand services based upon community needs,” the court filing said.

When taking over the hospitals, Prime said no changes would occur for 18 to 24 months, as it studied the cost of services being offered.

The board approved the sale in December 2024. Prime Healthcare took ownership March 1

Since formally taking ownership of St. Mary’s Hospital, a nonprofit hospital, and other facilities March 1, Prime has eliminated the childbirth labor and delivery services in Kankakee, as well as patient care managers in less than 50 days after the sale was closed, Rowe argued in the filing.

Prime requested a voluntary suspension of its Level II trauma designation to the state based on its lack of OB surgical coverage.

“Prime Healthcare does not comment on pending legal matters and cannot address the state’s attorney’s complaint,” Prime said in a statement Friday. “St. Mary’s Kankakee is part of the nonprofit Prime Healthcare Foundation and all changes in service lines have involved a thorough, data-driven analysis taking into account patient utilization, quality care and access and capacity at nearby facilities to meet community needs.”

The health care company also stated every service line change has followed all applicable requirements of the Health Facilities Services Review Board (HFSRB) and Illinois Department of Public Health (IDPH).

Daily Journal Reporter Lee Provost contributed to this story.