New regional health network will strengthen health care in the Illinois Valley
SPRING VALLEY, Illinois (October 14, 2020) - St. Margaret's Health
in Spring Valley, a member of SMP Health System, and Illinois Valley Community
Hospital (IVCH) in Peru have signed a binding Definitive Agreement to
consolidate their healthcare operations to form a regional health network.
The new organization will be governed by SMP Health System through a new
regional parent company, which will have board members representing the
local communities historically served by the two health systems.
“We are extremely pleased that IVCH has chosen to partner with St.
Margaret’s and the SMP Health System. SMP Health System is looking
forward to working with our IVCH colleagues to create a vibrant healthcare
network which will better serve the needs of the Illinois Valley community,”
said Aaron K. Alton, President/CEO SMP Health System. “This new
partnership will also help to expand the Mission of the Sisters of Mary
of the Presentation.”
“Our collective efforts will allow us to better address the challenges
we face in today’s healthcare climate,” said Tim Muntz, St.
Margaret’s President/CEO. “This affiliation allows us the
opportunity to enhance our operations and services, while also exploring
the possibilities of bringing additional services to our community.”
"Joining St. Margaret’s and SMP Health System provides us the
best opportunity to preserve the care provided by IVCH and ensure the
health needs of our community will be met long into the future,”
said Tommy Hobbs, CEO at IVCH. “Nothing is more important to us
than the well-being of those we serve.”
Both St. Margaret’s and IVCH have recently submitted Certificate
of Exemption applications to the Illinois Health Facilities and Services
Review Board (IHFSRB), for a change of ownership. After the affilation
is complete, IVCH will be known as St. Margaret’s Health - Peru.
Likewise, St. Margaret’s Hospital will be known as St. Margaret’s
Health - Spring Valley.
St. Margaret’s and IVCH intend to finalize their affiliation by the
end of this year, pending approval by the IHFSRB. Once the affiliation
is complete, the combined entities will conduct a thorough assessment
of both facilities, the services provided and the needs of the communities
that they serve. It is anticipated that the full integration of the two
organizations will take one to two years.
Frequently Asked Questions
What has been announced?
St. Margaret’s Health and IVCH have signed a binding Definitive Agreement
to form a regional health network as part of SMP Health System. By coming
together, we will be able to offer excellent healthcare close to home
and ensure a thriving health system to serve our community long into the future.
This announcement comes after an extensive amount of due diligence. The
best interests of our patients, medical staff, employees, and our communities
have been driving our decisions throughout this process.
What are the goals of this affiliation?
St. Margaret’s Health and IVCH have each served this region for more
than 100 years. We recognized that coming together is in the best interest
of our patients, given the dramatic changes in the healthcare delivery
system. By combining our operations, we will be able to provide more high-quality,
efficient and locally coordinated care for our patients.
Our two hospitals support a shared vision for efficiently delivering high-quality
healthcare in the region. We already successfully collaborate on joint
initiatives, such as Valley Regional Health Services and Valley Regional
Cancer Center. The residents of our communities have also long encouraged
our hospitals to work more closely together.
Together, we will form a sustainable regional health network that will
be able to meet the health needs of our communities, today and long into
What led to this decision?
As you know, today’s healthcare environment and the delivery of care
have evolved significantly in recent years. Stand-alone hospitals need
to think strategically and be fiscally responsible to survive.
Thanks to advances in healthcare, we are able to care for more people on
an outpatient basis. People who do need to spend the night in the hospital
generally have shorter stays than in years past. This shift places added
pressures on small community hospitals, like St. Margaret’s and
IVCH. Additional expertise, resources and partnerships are also necessary
to implement new population health initiatives that address the health
needs of entire communities.
After an extensive review of the hospital’s options dating back to
2017, the IVCH Board and leadership team determined that a mutually-beneficial
affiliation with another health system would allow IVCH to preserve and
enhance the clinical services available to the residents of the Illinois
Valley. IVCH approached St. Margaret’s to consider an affiliation.
St. Margaret’s and IVCH announced our intent to affiliate in March
2019. Since then, we have been exploring what an affiliation would mean
for our organizations, our patients, and our communities. Our conversations
were paused at the start of the COVID-19 crisis, but the experience of
a global pandemic has only made our resolve to come together stronger.
As a single organization, we can achieve the scale necessary to expand
our clinical programs, recruit physicians and staff, attract patients
and, most importantly, provide the highest quality care for our patients
close to home.
What happens next?
Nothing will change immediately.
We have submitted Certificate of Exemption applications for a change of
ownership to the Illinois Health Facilities and Services Review Board.
Applications were filed for both IVCH and St. Margaret’s to reflect
the new integrated health system. With regulatory approval, we expect
our affiliation to be finalized on December 31, 2020.
A local Board of community leaders will continue to guide the new integrated
system. Our two hospitals will be known as St. Margaret’s Health-Spring
Valley and St. Margaret’s Health-Peru.
Once our affiliation is completed, we will conduct a thorough assessment
of both facilities, services provided, and our community’s needs.
It is too soon to know when service line expansions or consolidations,
capital investments or other changes, may happen and what they would look like.
We expect the full integration of our two organizations to take one to
What will this mean for patients?
St. Margaret’s Health and IVCH will work collaboratively to offer
comprehensive, high-quality services so our patients can receive the care
they need close to home. We can do this more effectively working together
We intend to make this process as smooth as possible for our patients,
staff and communities. Our patients will be able to expect superior healthcare
delivered in the same compassionate manner. Patients will continue to
have access to their same care providers.
What services will the health network provide?
The new regional health network will look to grow and enhance the healthcare
services available in our community. After the transaction’s closing,
we will be reviewing what the best inpatient and outpatient models will
be for the new integrated network. We intend to continue operating both campuses.
Will IVCH follow the Ethical and Religious Directives for Catholic Health
Care Services (ERDs)?
As an affiliate of SMP Health System, IVCH will abide by the ERDs.
When will more information be available?
SMP Health System, St. Margaret’s Health and IVCH are committed to
sharing information throughout this process. We look forward to sharing
an update once the affiliation has been approved by the Illinois Health
Facilities and Services Review Board in the next month or two.
We remain optimistic about the opportunity an affiliation presents, to
better serve our communities. We are grateful for your ongoing support.