U.S. Rep. Nikki Budzinski of Illinois, D-Springfield, is asking the owners of a Granite City hospital about issues that she said have kept patients from getting care.
In a letter addressed to the CEO of Gateway Regional Medical Center and the head of Los Angeles-based American Healthcare Systems, the company that owns the hospital, Budzinski outlined reports of the hospital’s inability to pay employees, staffing issues and disruptions in care for critically ill patients.
“The financial and operational concerns surrounding Gateway warrant transparency from AHS about the hospital’s current condition, the management decisions that contributed to these circumstances, and the steps the company is taking to protect patients, workers, and the community,” she wrote.
Earlier this summer, the hospital reportedly was late in paying more than 600 employees. At least one other employee has had difficulty accessing her medical benefits, the letter states.
Referencing a report from Illinois Hospital regulators, Budzinski said that one person experiencing cardiac issues had been turned away from the hospital earlier this summer.
Budzinski is asking Gateway leadership for assurances they are addressing issues at the hospitals, including gaps in staffing and payroll delays.
“We’re gonna want to know that Gateway is a safe place, a reliable place for healthcare moving forward for the community in Granite City,” she said in an interview. “Specifically, just knowing people are going to be able to show up with a healthcare condition if it is an emergency and be able to get that care.”
In an emailed statement, a spokesman for American Healthcare Systems said Gateway has asked Budzinski for a face-to-face meeting with its leadership team and invited her to visit the hospital.
“Gateway’s financial challenges predate AHS, and turning around a hospital like this takes years, not quarters,” the statement read. “Under [CEO Joe] Ottolino, Gateway has brought in a new revenue cycle management company to address billing issues at the root of its cash flow pressure.”
The CEO of American Healthcare Systems, Michael Sarian, invested $1 million of his own funds earlier this month to cover the hospital’s payroll, the statement said.
"We didn’t put our own money into Gateway to walk away from it. Repayment is not our priority; the hospital’s success is,” Sarian said in a statement. “We know what this hospital means to its employees, its patients, and this community, and we intend to see it through.”
American Healthcare Systems managed the now-shuttered South City Hospital in St. Louis for less than a year before the troubled hospital closed for good.
Budzinski’s letter also raised concerns about the financial health of other hospitals American Healthcare Systems owns throughout the United States. Budzinski asked if the for-profit system had transferred money from Gateway to support the company’s other locations.
City: St. Louis, MO
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August 25, 2026 at 05:05AM
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