Kettering Health and Knox Community Hospital signed a nonbinding letter of intent that could bring the Mount Vernon, Ohio-based hospital into the Kettering Health system.

The organizations announced the proposed partnership today and will now begin a period of due diligence, planning and exclusive negotiations. If completed, the agreement would expand Kettering Health’s presence into a new Ohio community while supporting Knox Community Hospital’s long-term growth and sustainability.

Knox Community Hospital is a 99-bed, nonprofit community hospital in Mount Vernon, about 45 minutes northeast of Columbus. After evaluating proposals from several Ohio health systems, Knox selected Kettering Health as its preferred partner. Knox leaders said Kettering Health’s commitment to local care, collaboration and future investment helped distinguish the organization during the review process.

“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,” Kettering Health CEO Michael Gentry said in a statement announcing the agreement. “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.”

As part of the letter of intent, Kettering Health has committed to making significant capital investments in the Knox service area over 10 years following the transaction’s completion, including implementation of a new electronic health record system. Kettering Health also intends to offer continued employment to substantially all active Knox Community Hospital employees after closing.

The letter of intent is nonbinding, and additional work remains before a transaction can be completed. The organizations expect to continue due diligence through the fall and are working toward completing the transaction by the end of 2026, pending regulatory approvals and other customary closing conditions.