Prime Healthcare to Shut Three Chicago-Area OB Units by October 1

Key points

• Prime Healthcare is suspending obstetric units at three Illinois hospitals: Saint Joseph in Joliet, Mercy in Aurora, and Resurrection in Chicago.
• The closures are set to take effect on October 1, 2026, with services consolidated at Saint Mary of Nazareth and Olympia Fields Hospital.
• Prime cites annual financial losses exceeding $200 million and low birth volumes, with Saint Joseph alone projected to lose $69 million in 2026.
• Approximately 75 full-time nurses will be affected, though Prime states all will be offered other positions within the system.
• Prime has committed $1 million in grants for maternal health initiatives and expanded community prenatal care access.
• The suspensions are reversible if patient demand increases in the future.

Background

This decision follows a broader trend of Prime Healthcare consolidating services since acquiring eight Illinois hospitals from Ascension in 2024 and purchasing Olympia Fields Hospital earlier this year. The company previously suspended OB services at St. Mary’s Hospital in Kankakee and sought approval to close the inpatient pediatrics unit at Saint Joseph. These moves align with a national shift toward 'centers of excellence' where health systems concentrate specialized care at high-volume facilities to improve quality and manage costs, a strategy previously highlighted in regional hospital rankings.

How outlets are covering it

Prime Healthcare and the Illinois Health and Hospital Association argue the closures are driven by demographic shifts, declining birth rates, and severe financial distress, stating that consolidating care at high-volume centers ensures higher quality and patient safety. Conversely, Rep. Lauren Underwood and Joliet Councilwoman Suzanna Ibarra criticize the move as prioritizing profits over patients, noting that Prime has not adequately planned for transportation or access for mothers. Nurses, including those at Saint Mary of Nazareth, express concern that the closures will force patients to drive 30-40 minutes in emergencies, with National Nurses United planning a one-day strike to protest the changes and contract negotiations.

Why it matters

The closure of these units will significantly impact maternal and neonatal care access in the Chicago suburbs and city, potentially increasing travel times for emergency deliveries. It highlights the tension between financial sustainability for for-profit health systems and the public health needs of local communities, raising concerns about the long-term viability of hospital services in the region.

What to watch

Prime Healthcare will implement the OB suspensions on October 1, 2026. The company will monitor patient volumes to determine if the closures should be reversed. Meanwhile, National Nurses United is scheduled to hold a one-day strike at Saint Mary of Nazareth Hospital to protest the changes and push for contract improvements.