The Arch City Report

← The Arch City Report20 Aug · 25 min

The saga of a struggling Metro East hospital

The saga of a struggling Metro East hospital20 Aug25 min

Gateway Regional Medical Center in Granite City has stood for over 120 years, but its 600+ employees recently missed a paycheck. Business Journal reporter Nathan Rubbelke joins Erik to unpack how the hospital's Los Angeles-based owner, American Healthcare Systems, fell behind on payroll, racked up over $2.6 million in delinquent property taxes, and lost hospital properties at a tax sale — all while its co-founders are locked in a bitter legal battle accusing each other of misappropriating funds, including a mysterious $4.5 million in state supplemental funding. The conversation traces Gateway's journey from a nun-run Catholic hospital to a bankruptcy sale to AHS ownership, and explores the broader financial squeeze facing safety-net hospitals serving low-income, Medicaid-dependent communities across the country.

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Gateway Regional Medical Center faces tax sales and legal rift as owner provides $1M loan