Knox Community Hospital announced today it has signed a non binding letter of intent to join Kettering Health, a non-profit healthcare system in western Ohio. The agreement begins the next phase of a process focused on strengthening local access to care and investing in Knox Community Hospital’s future.
“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 D. 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. The organization brought forward a strong proposal demonstrating commitment to keeping care local, supporting our physicians and employees, investing in services and technology, and providing a solid platform for future growth and sustainability.”
The decision follows a thorough and deliberate search led by the Knox Community Hospital Board of Trustees and hospital and physician leadership. The team engaged partnership planning experts and conducted many months of due diligence beginning in earnest last September, encompassing more than 800 hours of onsite and virtual meetings, along with comprehensive financial and operational analysis and iterative proposal review and refinement with multiple potential partners. “
Every step of this process has been focused on what is best for Knox Community Hospital and the people who depend on it,” said Marc Odenweller, chairman of the Board of Trustees. “We spent months reviewing proposals, asking questions, meeting with potential partners and evaluating what each organization could mean for the future of care in this community. Kettering Health is recognized for outstanding outcomes, quality of care and dedication to promoting and supporting a healthy life for their patients. 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.”
The two organizations now enter a period of exclusive negotiation, continued due diligence and alignment planning. The transaction is not final until a definitive agreement is completed, regulatory approvals are received and customary closing conditions are met.
Knox Community Hospital and Kettering Health expect to work toward a definitive agreement by early fall, with a goal of fully completing the transaction by the end of 2026, pending all legal and regulatory reviews.
Headquartered in Kettering, Ohio, the Kettering Health system includes 14 medical centers and over 100 outpatient locations, with more than 1,800 physicians and 15,000 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.”
While final terms will be determined through the definitive agreement process, Kettering Health has agreed to make significant capital investments in Knox Community Hospital’s service area over the 10 years following closing. That commitment includes implementing a new electronic health records system (EHR) following agreement completion. Kettering Health has also committed to supporting workforce stability. After the transaction closes, Kettering Health intends to offer continued employment to substantially all active Knox Community Hospital employees.
Kettering Health will also work to support a smooth workforce transition during the first year after closing. Other key provisions of the non-binding letter of intent include maintaining and enhancing current services while investigating opportunities to provide new services to better meet growing community need. A Knox Community Hospital Advisory Board, made up of members from the current board, would provide input to ensure continued focus on the voice, wishes and perspective of the local community.
