St. Margaret’s Health is exploring a new and promising opportunity, designed specifically to keep rural hospitals such as St. Margaret’s in operation and maintain their important role in the community.
Economic concerns have been building for years in the healthcare industry. In the aftermath of the Pandemic, these trends have only accelerated. This turn of events has posed significant financial hardships for healthcare organizations, threatening the continued closure of rural hospitals across America. Unfortunately, St. Margaret’s has not been immune to this shift. As such, significant changes are necessary.
St. Margaret’s is pursuing conversion of one of its hospitals to a new type of hospital, called a Rural Emergency Hospital (REH). The REH designation was recently established by the federal government, to address the growing concern over closures of rural hospitals nationally. Either SMH-Spring Valley or SMH-Peru could potentially qualify for the REH designation. No determination has been made regarding which of its two hospitals may become an REH, but the intent would be for the other hospital to remain a full-service hospital.
The REH designation allows for provision of emergency services, observation care and other outpatient services. Conversion of one of the St. Margaret’s facilities to an REH would give St. Margaret’s the flexibility to continue its consolidation of services and reduce duplication, while still providing emergency services at both locations. The REH designation also comes with significantly higher payment rates from Medicare.
Based on this potential REH opportunity, St. Margaret’s has put on hold its application to State regulators (Illinois Health Facilities & Services Review Board) to discontinue emergency and inpatient services at St. Margaret’s Health-Spring Valley. St. Margaret’s is actively working with our local State legislators – Representative Lance Yednock and Senator Sue Rezin – to facilitate the incorporation of the REH designation into the Illinois Hospital Licensing Act.
