OSF withdraws Ottawa replacement hospital permit

OSF HealthCare announced today the withdrawal of its current permit application (#24-011) to replace the OSF Saint Elizabeth Ottawa hospital and permit application #24-013 for the discontinuation of services at the current Ottawa facility, originally filed with the Illinois Health Facilities and Services Review Board (HFSRB) in early 2024.

The decision follows significant shifts in construction costs, regulatory requirements, and regional health care needs since the original application was submitted. The State’s review of the project has been deferred three times at OSF’s request, with the current deferral set to expire on March 31, 2026.

“Too much has changed since the initial filing for us to responsibly move forward without re-evaluating the project,” said Bob Sehring, CEO of OSF HealthCare. “We need to take a fresh and thoughtful look at the services needed in the region, what size and type of facility will best support patients, and how we can ensure long-term sustainability.”

At the November 18 HFSRB meeting, Sehring noted the need to reassess the scope, size, and cost of a future facility. Several Board members encouraged OSF to reconsider the project in light of new information and evolving community needs.

The updated planning effort is expected to take 18 months or more, extending well beyond the current deferral period, which will necessitate the withdrawal and future resubmission of a new permit application.

As it restarts planning, OSF will broaden its engagement efforts across the entire planning region.

“When we begin the next phase, we will actively seek input from communities throughout the region. Every voice matters in shaping the future of local health care” said Dawn Trompeter, President of OSF Saint Elizabeth Medical Center and Associate Regional CEO.

OSF will also evaluate utilization data following the recent consolidation of inpatient obstetrics and ICU services at OSF Saint Elizabeth in Peru, as well as the opening of the full 45 med/surg beds there. It will take many months to have enough data to trend for accurate planning and design of a new facility and needed services. 

“We are grateful to the State staff for their guidance through this complex process,” said Sehring. “We will continue working closely with them as we prepare any future applications that best serve our patients and our communities.”

OSF Saint Elizabeth in Ottawa will continue offering a robust complement of services at the current facility, including medical–surgical beds, lab, imaging, emergency services, inpatient and outpatient behavioral health, and other outpatient services.