The Illinois Health Facilities and Services Review Board last week denied applications from two competing hospital systems seeking to build new facilities in the growing region north of Chicago in McHenry County.
Centegra Health System wants to build a 128-bed, $233 million facility in the town of Huntley while Mercy Health System wants to construct a 128-bed, $200 million hospital in Crystal Lake.
The regulatory panel rejected the proposals over concerns that the new facilities would result in too many unused beds at existing hospitals.
Both systems, which believe the growing region needs additional facilities, are expected to appeal.
The panel approved a new Memorial Hospital-East facility. The new 94-bed, $118 hospital is to be built near St. Louis.