A cyberattack is partly to blame for St. Margaret's Health closing all operations
The Illinois Catholic health system has signed a nonbinding letter of intent with OSF Healthcare to acquire the Peru campus.
Photo: John Fedele/Getty Images
Two rural Catholic hospitals in Illinois are closing all operations as of Friday, June 16, due in part to a 2021 cyberattack.
St. Margaret's Health in Peru and Spring Valley will be closing all current operations as of Friday, June 16, according to a notice on the St. Margaret's Health website.
"Due to a number of factors such as the COVID-19 pandemic, the cyberattack on the computer system on St. Margaret's Health and a shortage of staff, it has become impossible to sustain our ministry. This saddens us greatly," said Sister Suzanne Stahl, director Provincial at Sisters of Mary of the Presentation, in a Facebook video posted in May.
St. Margaret's Health has signed a nonbinding letter of intent with OSF Healthcare to acquire the Peru campus and related ambulatory facilities and clinics, she said. The proceeds will help pay off a portion of St. Margaret's debt and ensure that Catholic faith-based healthcare will continue in the Illinois Valley and surrounding areas.
A notice on the St. Margaret's Health website says "SMH Peru and Spring Valley will be closing all current operations as of Friday, June 16, 2023 at 11:59 P.M. This includes the Hospital, Clinics and other facilities at both locations. Patients needing emergency care should call 911. Other inpatient and outpatient services can be obtained in Mendota, Princeton and Ottawa OSF locations."
WHY THIS MATTERS
The hospital closures are the first known to link its closure to a cyberattack.
A ransomware attack in 2021 hit SMP Health, which includes the hospitals of St. Margaret's Health. The attack halted the hospital's ability to submit claims to insurers, Medicare or Medicaid for months, sending it into a financial spiral, said Linda Burt, the hospital's vice president of quality and community services, in talking about Spring Valley to NBC News.
However, Sister Suzanne Stahl related the closures to the struggle of rural hospitals throughout the nation. Many have already closed, she said.
THE LARGER TREND
Last year, a report from the American Hospital Association highlighted the variety of causes that resulted in 136 rural hospital closures from 2010 to 2021, and a record 19 closures in 2020 alone.
These include many longstanding pressures, such as low reimbursement, staffing shortages, low patient volume and regulatory barriers, as well as the continued financial challenges associated with the COVID-19 pandemic, the AHA said. Recently, expenses for labor, drugs, supplies and equipment have also increased dramatically, ultimately causing difficulties in maintaining access to care for people in rural communities.
Cyberattacks both threaten patient safety and are costly to hospitals. The most expensive healthcare cyberattack cost an average of $4.4 million in the past 12 months, according to a Ponemon Institute study, including $1.1 million of productivity loss.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
