Hospital systems merge operations and prepare for federal spending cuts

St. James Hospital and Health Centers is moving most elective surgical procedures from its Olympia Fields, IL, campus to its Chicago Heights facility as it consolidates some services to improve efficiency. The recession that began in December 2007 has helped force hospitals such as St. James to rethink the types and number of services they can offer. Now the political landscape could permanently change the way many facilities do business, as hospitals brace for huge cuts in federal health spending proposed by President Barack Obama and Congress to fund healthcare for the uninsured.