July 26, 2025
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Negotiations continue between Kankakee County, Prime Healthcare regarding lawsuit

By Shaw Local News Network
St. Mary’s Hospital in Kankakee has had its Level II trauma designation suspended by the state as a result of the loss of OB/GYN doctors dedicated to the hospital.

St. Mary’s Hospital in Kankakee has had its Level II trauma designation suspended by the state as a result of the loss of OB/GYN doctors dedicated to the hospital. (Tiffany Blanchette)

Attorneys for Kankakee County and Prime Healthcare told a judge that the two sides continue working on a possible settlement regarding the latest filing against the owner of St. Mary’s Hospital Kankakee.

Circuit Judge Lindsay Parkhurst granted a request to continue an agreement as negotiations remain ongoing.

The agreement has the county not moving forward on asking for a temporary restraining order. The two sides will be back in court Sept. 10 for a status update on the settlement.

Kankakee County State’s Attorney Jim Rowe said that if there is no settlement, the state will move forward with seeking the temporary restraining order.

In the complaint filed in June, Rowe argued that Prime Healthcare was not being honest when it provided testimony before the state health facilities board regarding Prime Healthcare’s acquisition of 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 the hearing, Fred Ortega, corporate director of public relations for Prime Healthcare, affirmed in his statement to the board that “Prime Healthcare has committed to continuing all services at these facilities and hopes to expand services based upon community needs,” according to a court filing.

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, and Prime Healthcare took ownership March 1.

Since formally taking ownership of the nonprofit St. Mary’s Hospital and other facilities, Prime has eliminated the childbirth labor and delivery services in Kankakee, as well as patient care managers. This occurred 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.

The health care company said every service-line change has followed all applicable requirements of the Illinois Health Facilities and Services Review Board and Illinois Department of Public Health.