Ransomware attack forces closure of St. Margaret's Health facilities

St. Margaret’s Health, a healthcare provider in Illinois, has announced the closure of its hospitals and facilities in Peru and Spring Valley, citing significant disruptions caused by a ransomware attack in 2021.

The attack, which occurred in late February 2021, resulted in the complete shutdown of the computer network at the Spring Valley hospital, impacting all web-based operations, including the patient portal. Fortunately, the Peru branch operated on a separate system and was not affected.

The hospital revealed on social media that the ransomware incident severely affected its ability to bill patients and receive timely payments for services rendered. The systems remained offline for over three months, exacerbating financial challenges faced by the hospital amid the ongoing Covid-19 pandemic, staffing shortages, and escalating costs of goods and services.

As a result of these compounding factors, St. Margaret’s Health was compelled to suspend certain services in January of this year. The final step in their response to the attack will be closing the Peru and Spring Valley facilities on June 16.

In an announcement shared via social media, Suzanne Stahl, Chairwoman of St. Margaret’s, disclosed that OSF HealthCare would acquire the Peru hospital, which will aid in covering some of the debts incurred by the Spring Valley location.

Additionally, St. Margaret’s Health will shut down clinics in Henry, LaSalle, and Streator, intending to sell other assets not involved in the OSF HealthCare transaction. This makes St. Margaret’s Health the first healthcare institution to attribute its closure to a ransomware attack directly.