Insurance Scare That Impacted 8 Chicagoland Hospitals Resolved

CHICAGO, IL — Eight Chicagoland hospitals that were on the chopping block for Blue Cross Blue Shield Illinois will remain in network, officials announced Thursday.

The hospitals are owned by California-based system Prime Healthcare, which purchased the former Ascension hospitals in 2025. Prime announced that contract negotiations have been completed and that the hospitals will remain in-network come June 1, despite a previous cancellation notice sent from BCBSIL.

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"Prime Healthcare appreciates BCBSIL’s recognition of the importance of preserving access to care for patients and communities across Illinois, especially those who rely on essential safety net services," Prime said in a statement. "Consistent with Prime’s mission-driven commitment to health equity and social responsibility, recognized nationally by the Lown Institute, patients will continue to have uninterrupted access to care without increased costs, and BCBSIL will correct previously issued termination notices related to the June 1 date."

In March, BCBSIL distributed a letter to its members that stated Prime Healthcare hospitals and physicians may leave the network on June 1. The cancellation would have affected the hospitals in eight Illinois locations at:

• Holy Family Medical Center – Des Plaines
• Mercy Medical Center – Aurora
• Resurrection Medical Center – Chicago
• Saint Francis Hospital – Evanston
• Saint Joseph Medical Center – Joliet
• Saint Joseph Hospital – Elgin
• St. Mary’s Hospital – Kankakee
• Saint Mary of Nazareth Hospital – Chicago

At the time, contract negotiations between Prime and BCBSIL were still ongoing, and no decision had been made.

As of May 7, Prime remains contracted with all major health plans in Illinois, and patient access will not change.