St. Margaret's Health CEO Tim Muntz blamed the June closure of St. Margaret’s Health Spring Valley (Ill.) on Spring Valley City Bank, Shaw Local News Network reported Sept. 25.
According to Mr. Muntz, the bank "swept nearly $7.3 million" in funds despite a "forbearance agreement" that the two parties entered into six weeks earlier. The bank's actions left the hospital "no choice" but to close, Mr. Muntz said in a bankruptcy court filing.
Mr. Muntz said that the bank swept the funds on June 5. The facility announced its closure on June 12 and officially ceased operations on June 16. The hospital filed for bankruptcy Sept. 1. Nearby, Peoria, Ill.-based OSF HealthCare has been attempting to purchase and reopen the closed St. Margaret’s Health Peru (Ill.) facilities.