Kettering Health could soon acquire a small nonprofit hospital in Ohio.
Knox Community Hospital signed a non binding letter of intent to join the network on Tuesday. The hospital is in Mount Vernon, about 40 miles northeast of Columbus.
Kettering Health now operates 14 medical centers and more than 100 outpatient locations. While acquiring the hospital adds just 99 beds to its count, the deal would still be a significant geographical expansion for the health system, as its farthest medical center beyond Southwest Ohio.
According to a press release, the Knox Community Hospital board of trustees chose Kettering Health after working with experts and conducting months of due diligence with more than 800 hours of onsite and virtual meetings.
The organization said it also conducted a comprehensive financial and operational analysis to ensure the move is what is best for the hospital.
“Throughout this evaluation, our focus has been on finding the right long-term path for Knox Community Hospital and the community we serve,” said Bruce White, president and CEO of Knox Community Hospital. “Kettering Health is a trusted Ohio-based health system that understands our mission, knows the communities we serve and is invested in our shared vision for long-term success."
Kettering Health and Knox Community Hospital are now doing more negotiating and planning. A transaction will not be final until this phase is completed and approved by regulators.
That process is expected to be completed by early fall with a goal of completing the transaction by the end of 2026.
“Kettering Health is recognized for outstanding outcomes, quality of care and dedication to promoting and supporting a healthy life for their patients,” said Marc Odenweller, chairman of the board of trustees. "After careful review, we believe Kettering Health offers the commitment, resources and focus on quality that we were seeking to support and enhance local care for many years to come.”
Kettering Health has agreed to make capital investments in the community hospital's service area over 10 years if the organizations join. Those include implementing a new electronic health records system. The announcement said that Kettering Health will also offer continued employment to all active Knox Community Hospital employees.
“Knox Community Hospital has a strong legacy of care and service to this community, and we look forward to taking this important next step together,” said Michael Gentry, CEO of Kettering Health. “The opportunity to become partners is energizing, and we are excited to work alongside the physicians, nurses, employees and leaders that have built the hospital’s solid foundation – strengthening access and building on our organization’s mission to promote and restore health.”
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