Illinois

Former Spring Valley hospital is headed to the auction block

WCBU | By Tim Shelley

Published June 18, 2024 at 1:30 PM CDT

Spanning 226,352± SF across five stories, the former hospital, located at 600 East 1st Street, features state-of-the-art medical facilities, including CT, x-ray, and MRI rooms, cardio and surgery suites, OB/GYN delivery and recovery rooms, an ICU ward, a 19-bed senior housing wing and a separate two-story medical office building and administrative offices.

The former St. Margaret's Hospital in Spring Valley is up for sale in a bankruptcy auction next month.

Hilco Real Estate Sales is taking bids now through July 24 at 5 p.m. An opening asking price for the five-story hospital wasn't disclosed. Personal property and equipment were already sold off.

Both SMP Health campuses in the Illinois Valley shut down abruptly last year, and entered into bankruptcy proceedings last fall. Among other factors, the Catholic health care system blamed a cyberattack and staffing shortages for the collapse. The Spring Valley hospital has been closed for about a year.

OSF HealthCare acquired the former St. Margaret's campus in Peru, reopening it as part of Saint Elizabeth Medical Center. The Peoria-based health care provider ultimately plans to move the main campus to the Peru facility and build a new hospital in Ottawa.

But the Spring Valley hospital wasn't picked up by OSF. The real estate broker said the building could be used for health care again, or alternatively for education, senior housing, or transitional or community living, among other possibilities.