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State board rejects Crystal Lake hospital project

JOLIET — A health care planning board voted Tuesday to reject a proposed new hospital in the northern Illinois city of Crystal Lake.

The Illinois Health Facilities and Services Review Board voted 8 to 1 Tuesday against the $200 million Mercy Alliance Inc. proposal.

The board has yet to vote on a competing hospital project in nearby Huntley. Centegra Health System wants to build a 128-bed acute care hospital there at an estimated cost of $233 million.

The board has the authority to approve or deny requests to build hospitals in Illinois. The goal is to avoid duplication of health services.

Mercy Alliance Inc. had proposed a 128-bed acute care in Crystal Lake.