OSF Healthcare to buy real estate, equipment from Galesburg Cottage Hospital

Published: Feb. 28, 2022 at 10:24 AM CST
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GALESBURG, Illinois (KWQC) - OSF HealthCare and Cottage Hospital have signed an exclusive letter of intent for OSF to purchase real estate, medical equipment, and other assets owned by Cottage Hospital.

According to OSF, real estate includes buildings and land.

In a media release, OSF Healthcare said Monday they expect the transaction to close in the spring. OSF does not intend to offer inpatient services at the Cottage Hospital location, according to the release. OSF is now the only hospital in Galesburg.

OSF said St. Mary Medical Center in Galesburg has the capacity to provide the inpatient care necessary for the area.

In late December 2021, the Centers for Medicare & Medicaid Services served Galesburg Cottage Hospital a termination notice after multiple health and safety violations, stating the agreement has been terminated because of the hospital’s noncompliance with four different sections of the Medicare Conditions of Participation: governing body, patient rights, nursing services, and physical environment.

According to CMS, the Medicare program would not make payment for inpatient hospital services given to patients who are admitted after Jan. 14.

On Jan. 5, Galesburg Cottage Clinic filed for bankruptcy according to Courtney Bibo, Cottage Hospital director of community and staff relations.

On Jan. 8, Galesburg Cottage Hospital closed and let go of dozens of employees, per hospital CEO Sanjay Sharma.

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