{"id":574129,"date":"2026-04-09T15:47:11","date_gmt":"2026-04-09T15:47:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/574129\/"},"modified":"2026-04-09T15:47:11","modified_gmt":"2026-04-09T15:47:11","slug":"illinois-regulators-have-little-power-to-stop-hospital-shutdowns-lawmakers-are-stepping-in-to-change-that","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/574129\/","title":{"rendered":"Illinois regulators have little power to stop hospital shutdowns, lawmakers are stepping in to change that"},"content":{"rendered":"<p>When West Suburban Medical Center abruptly closed its doors temporarily last month, saying it had run out of cash to pay staff, there was little warning for thousands of patients and hundreds of employees.<\/p>\n<p>Illinois regulators tasked with overseeing hospitals had little power to stop it. They also might not be able to keep open some of the dozens of other safety net hospitals around the state that mostly treat low-income and immigrant communities amid <a class=\"Link\" href=\"https:\/\/www.kff.org\/medicaid\/medicaid-what-to-watch-in-2026\/\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">federal changes next year<\/a> that could drastically reduce how much money medical centers get paid.<\/p>\n<p>But two Democratic state lawmakers are proposing <a class=\"Link\" href=\"https:\/\/ilga.gov\/Legislation\/BillStatus\/FullText?LegDocId=209492&amp;DocName=10400SB3916sam001&amp;DocNum=3916&amp;DocTypeID=SB&amp;LegID=167375&amp;GAID=18&amp;SessionID=114&amp;SpecSess=&amp;Session=\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">legislation<\/a> to help the state better prepare. Bills from state Sen. Laura Fine and state Rep. Robyn Gabel would require all hospitals to file plans with the state in case they close or scale back services to make sure patients don\u2019t fall through the cracks. For-profit hospitals owned by investors, like West Suburban, also would have to give the state a deeper look into their finances. Now, that\u2019s largely shielded from the public.<\/p>\n<p>\u201cThe state, with legislation like this, is really stepping up to make sure that our hospital system is strong and that people are able to get the care that they need \u2026 so we are really ready for whatever happens in the future,\u201d said Fine, who represents the northern suburbs and is sponsoring the Senate bill.<\/p>\n<p>                            <a class=\"AnchorLink\" id=\"image-df0000\" name=\"image-df0000\" data-cms-ai=\"0\"\/><\/p>\n<p>    <img loading=\"lazy\" decoding=\"async\" class=\"Image\" alt=\"A portrait of State Sen. Laura Fine\"  width=\"840\" height=\"560\" src=\"https:\/\/cst.brightspotcdn.com\/dims4\/default\/47299ca\/2147483647\/strip\/true\/crop\/3585x2390+0+0\/resize\/840x560!\/quality\/90\/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F4a%2Ff1%2F1bcca8724d6899d0afd59e3c5a0a%2F2018election-047.JPG\" data-lazy-load=\"true\" bad-src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSI1NjBweCIgd2lkdGg9Ijg0MHB4Ij48L3N2Zz4=\"\/><\/p>\n<p>State Sen. Laura Fine is proposing legislation that she hopes will better protect patients if there is a closure and requires hospitals to plan ahead.<\/p>\n<p>The proposed legislation was filed in February. Fine said she doesn\u2019t know if it would have prevented West Suburban\u2019s closure, \u201cbut it would have prepared us for it, and a plan would have been in place once that process started.\u201d<\/p>\n<p>When the Oak Park hospital suddenly closed, several lawmakers called for better state oversight, especially considering the millions of taxpayer dollars hospitals receive to treat patients and pay for operations.<\/p>\n<p>\u201cWe do need to have a warning system,\u201d said Democratic state Rep. Norma Hernandez, whose district includes West Suburban and <a class=\"Link\" href=\"https:\/\/chicago.suntimes.com\/business\/2022\/3\/10\/22970989\/westlake-hospital-owner-sell-chicago-area-hospitals-pipeline-health\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">Westlake Hospital<\/a>, which closed in 2019. \u201cWhat they\u2019re doing now, it should be illegal because it\u2019s so harmful.\u201d<\/p>\n<p>She recommends tracking public dollars hospitals receive to understand how they\u2019re spent, such as if they\u2019re paying their bills on time.<\/p>\n<p>Dr. Manoj Prasad, West Suburban\u2019s owner and CEO of Resilience Healthcare, said he told state officials for months that he needed support and more money. But he owes <a class=\"Link\" href=\"https:\/\/www.wbez.org\/health-medicine\/2026\/04\/01\/west-suburban-medical-center-struggled-treat-patients-closed-vows-to-reopen-weiss-memorial-inspection-reports-oak-park\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">more than $100 million<\/a> to the state and vendors. A financial consultant reviewed the hospital\u2019s finances, but it\u2019s not complete, a state spokeswoman said, alleging the hospital hadn\u2019t provided full transparency into its finances and operations.<\/p>\n<p>Prasad <a class=\"Link\" href=\"https:\/\/www.ilga.gov\/ftp\/JCAR\/AdminCode\/077\/077011300B02400R.html\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">followed the law<\/a> when he suspended services at West Suburban. He said it\u2019s temporary. He had 30 days to notify the state and local lawmakers after suspending services and explain why. Now he must provide updates every 30 days.<\/p>\n<p>                            <a class=\"AnchorLink\" id=\"image-bc0000\" name=\"image-bc0000\" data-cms-ai=\"0\"\/><\/p>\n<p>    <img loading=\"lazy\" decoding=\"async\" class=\"Image\" alt=\"Dr. Manoj Prasad, who owns West Suburban Medical Center, speaks before a bank of microphones at the hospital in April.\"  width=\"840\" height=\"560\" src=\"https:\/\/cst.brightspotcdn.com\/dims4\/default\/5365eee\/2147483647\/strip\/true\/crop\/6122x4083+0+0\/resize\/840x560!\/quality\/90\/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F66%2F8d%2Fb96552d5461da2a9ce0de22027da%2Fwestsubfolo-260402-03-1.jpg\" data-lazy-load=\"true\" bad-src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSI1NjBweCIgd2lkdGg9Ijg0MHB4Ij48L3N2Zz4=\"\/><\/p>\n<p>Dr. Manoj Prasad, who owns West Suburban Medical Center, blames a new electronic medical record system for the hospital\u2019s financial woes. Prasad said he had to suspend services because the system failed to bill for much of the hospital\u2019s work for the last year. <\/p>\n<p>Anthony Vazquez\/Sun-Times<\/p>\n<p>Dr. Linda Rae Murray, a retired local physician, understands how little power the state has to regulate hospitals. She was on the Illinois Health Facilities and Services Review Board, which regulates the health care industry, when Mercy Hospital on the Near South Side <a class=\"Link\" href=\"https:\/\/www.wbez.org\/environment-public-health\/2021\/10\/25\/inside-the-fight-to-save-chicagos-historic-mercy-hospital\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">planned to shutter<\/a> during the pandemic, before getting bought for $1. It\u2019s now called Insight Hospital and Medical Center.<\/p>\n<p>The board <a class=\"Link\" href=\"https:\/\/www.wbez.org\/environment-public-health\/2020\/12\/15\/state-regulators-say-mercy-hospital-must-stay-open-for-now\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">voted against Mercy\u2019s closure<\/a>, but <a class=\"Link\" href=\"https:\/\/www.wbez.org\/environment-public-health\/2021\/03\/23\/historic-mercy-hospital-can-be-sold-the-next-hurdle-is-reviving-it\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">had to approve<\/a> the new owner. All it required was the new owner filling out paperwork correctly. Murray said she was so frustrated by the board\u2019s broader policies and procedures that she left when her term was up.<\/p>\n<p>She understands the frustration over West Suburban\u2019s sudden closure. People have deep ties to their community hospital, and it\u2019s often the biggest employer in the area.<\/p>\n<p>But, Murray said, \u201cI don\u2019t understand how anyone can expect any state facility board or any other function of state government to force a hospital to stay open if, in fact, the hospital is losing money.\u201d<\/p>\n<p>She has an idea for how the state could toughen up: require hospitals to keep reserves for emergencies, like making payroll, and keep a closer eye on the quality of care provided.<\/p>\n<p>Inspectors visited West Suburban <a class=\"Link\" href=\"https:\/\/www.wbez.org\/health-medicine\/2026\/04\/01\/west-suburban-medical-center-struggled-treat-patients-closed-vows-to-reopen-weiss-memorial-inspection-reports-oak-park\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">several times<\/a> over patient care issues before the hospital closed. Prasad <a class=\"Link\" href=\"https:\/\/www.wbez.org\/health-medicine\/2025\/08\/08\/weiss-memorial-hospital-emergency-room-in-uptown-closes\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">closed his other hospital<\/a>, Weiss Memorial in Uptown on Chicago\u2019s North Side, last August.<\/p>\n<p>Bill would make all hospitals develop a \u2018financial resolution plan\u2019 <\/p>\n<p>Fine\u2019s proposed legislation, which Gabel mirrors in the state House, would require all hospitals licensed by the state to submit a \u201cfinancial resolution plan\u201d in the event of \u201cmaterial financial distress.\u201d<\/p>\n<p>                            <a class=\"AnchorLink\" id=\"image-110000\" name=\"image-110000\" data-cms-ai=\"0\"\/><\/p>\n<p>    <img loading=\"lazy\" decoding=\"async\" class=\"Image\" alt=\"A sign at West Suburban Medical Center on April 1 alerting patients of its closure.\"  width=\"840\" height=\"560\" src=\"https:\/\/cst.brightspotcdn.com\/dims4\/default\/47c98d8\/2147483647\/strip\/true\/crop\/6122x4083+0+0\/resize\/840x560!\/quality\/90\/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2Fa8%2F7e%2F35c582b74ec49381239f615096d7%2Fwestsubfolo-260402-14-1.jpg\" data-lazy-load=\"true\" bad-src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSI1NjBweCIgd2lkdGg9Ijg0MHB4Ij48L3N2Zz4=\"\/><\/p>\n<p>A sign at West Suburban Medical Center on April 1 alerting patients of its closure.<\/p>\n<p>Anthony Vazquez\/Sun-Times<\/p>\n<p>The plans would include everything from who owns the hospital, to how to safely transfer patients to other hospitals if their owners temporarily suspend services or close. Hospitals would need to identify potential gaps in services they would create, and what would happen to their employees and medical trainees.<\/p>\n<p>Hospitals that don\u2019t comply would be fined no more than $500 a week, or just over $25,000 a year.<\/p>\n<p>For for-profit hospitals, there would be even more requirements: audited financial statements and monthly balance sheets, among other documents, filed with the state every quarter that could provide clues into whether those medical centers are struggling. If they don\u2019t comply, the Illinois Department of Healthcare and Family Services, which oversees Medicaid public health insurance for people who are low-income or have a disability, could cut off funding.<\/p>\n<p>The <a class=\"Link\" href=\"https:\/\/www.kff.org\/state-health-policy-data\/state-indicator\/hospitals-by-ownership\/?currentTimeframe=0&amp;sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">majority of hospitals <\/a>in Illinois are nonprofits, according to KFF, a health policy and research organization. Their finances are easier to find than a for-profit, from public tax returns filed with the government, to hospitals posting audited financial statements online.<\/p>\n<p>Prasad said it would be too expensive to file audits each quarter. But he said it\u2019s fair for the state to want to look deeper.<\/p>\n<p>Fine hopes her legislation doesn\u2019t get watered down during negotiations with the Illinois Health and Hospital Association, a powerful lobbyist for almost every hospital in the state and others.<\/p>\n<p>                            <a class=\"AnchorLink\" id=\"image-d50000\" name=\"image-d50000\" data-cms-ai=\"0\"\/><\/p>\n<p>    <img loading=\"lazy\" decoding=\"async\" class=\"Image\" alt=\"State Representative Robyn Gabel speaks at a podium on July 29, 2024. \"  width=\"840\" height=\"560\" src=\"https:\/\/cst.brightspotcdn.com\/dims4\/default\/60dd23f\/2147483647\/strip\/true\/crop\/5088x3392+0+0\/resize\/840x560!\/quality\/90\/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2Fe5%2F46%2Ffd59ac86482dbb46f20a1d5132ce%2Fpritzkersigning-073024-04.jpg\" data-lazy-load=\"true\" bad-src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSI1NjBweCIgd2lkdGg9Ijg0MHB4Ij48L3N2Zz4=\"\/><\/p>\n<p>State Rep. Robyn Gabel is sponsoring the legislation in the state House to try to hold hospitals more accountable.<\/p>\n<p>Anthony Vazquez\/Sun-Times file<\/p>\n<p>A.J. Wilhelmi, president and CEO of the IHA, said some of the information that would be required is already reported to the state, such as how many licensed beds hospitals have.<\/p>\n<p>\u201cIf the goal here is to have a better understanding of hospitals that are struggling so that there can be continuity of care in the event that service lines or hospitals close, let\u2019s have that conversation,\u201d Wilhelmi said. \u201cBut I think broadening that scope to the entire hospital community is challenging.\u201d<\/p>\n<p>Spokespeople for HFS and the Illinois public health department would not comment on the proposed legislation.<\/p>\n<p>Contributing: Kaitlin Washburn<\/p>\n","protected":false},"excerpt":{"rendered":"When West Suburban Medical Center abruptly closed its doors temporarily last month, saying it had run out of&hellip;\n","protected":false},"author":2,"featured_media":574130,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[97,252,253],"class_list":["post-574129","post","type-post","status-publish","format-standard","has-post-thumbnail","category-health-care","tag-health","tag-health-care","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/574129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=574129"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/574129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/574130"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=574129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=574129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=574129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}