The Illinois Health Facilities and Services Review Board rescinded Advocate Sherman Hospital’s permit to build a $12.7 million surgical center originally granted five years ago.
“I think this permit needs to be relinquished, and there needs to be a new application,” board member Gary Kaatz said. His reasoning was Advocate Sherman hasn’t shown due diligence and the permit is outdated. Kaatz also has concerns, “about the stability of the medical staff and surgical program at Sherman Hospital.”
Advocate Sherman applied for a Certificate of Need in January 2017 for a surgical center with three operating rooms and 16 recovery rooms. Patients could undergo select outpatient surgery at the center. The hospital partnered with a national surgical firm and local doctors, who had written letters of support and agreed to make referrals to the surgical center. The permit was renewed in March 2019.
Hospital officials sought a four-month renewal this year to revamp the project that would now include only two operating rooms. It would shut down two operating rooms at the hospital.
“You are likely concerned that the project has not progressed as planned over the last five years. I share your frustration. I apologize this has not come together within your timeline,” Advocate Sherman President Sheri De Shazo said at Tuesday’s meeting, which was held virtually.
A series of mergers, including one at Advocate Sherman, led to delays, she said. Last year, the hospital bought out the surgical firm, she said. The COVID-19 pandemic caused more delays, she said.
The hospital needs time to reevaluate its plans and make any needed adjustments, De Shazo said.
“It sounds like this is an entirely different project than what we initially approved,” board member Dr. Stacy Grundy said.
What has remained the same is the hospital’s commitment to having a multidisciplinary surgery center, De Shazo said.
However, Advocate Sherman must find new supporters since some doctors withdrew their support for the center and a private practice, OrthoIllinois, has an application before the state board for a permit to build its own surgical center.
Dr. Jeffrey Kazaglis wrote a letter of support for Advocate Sherman’s original application because the area was dealing with a critical need for surgical rooms. The need remains, he said Tuesday when he spoke to the board.
Surgery centers are the future of health care, Kazaglis said. “We should be transitioning patients from hospital-based care to surgery center outpatient care. The numbers are irrefutable. It provides a lower cost for patients and insurance carriers and has better clinical outcomes.”
There has been no visible progress on the project, Kazaglis said. “The land sits untouched. We have not had a meeting since 2018. This is simply not the same project you approved five years ago,” he said when withdrawing his support.
OrthoIllinois has a December hearing to appeal the board’s decision not to approve its application earlier this year.
“Fundamentally, surgery centers are the future. We need more surgery centers,” said Dr. Tom Stanley, a partner with OrthoIllinois. “Sherman’s project just didn’t make sense anymore, and they need to go back to the drawing board to make it work,” he said. There’s room for Advocate Sherman’s and OrthoIllinois’ projects, he said.
Advocate Sherman plans to come before the board with another application for a permit, De Shazo said.
