Quincy, Ill.-based Blessing Health System will assume ownership of Keokuk (Iowa) Area Hospital from West Des Moines, Iowa-based UnityPoint Health on March 1.
After the deal, Keokuk Area Hospital would become Blessing Health System's third hospital.
The organizations entered talks on the potential deal in October 2020. The talks resulted in a "member substitution" rather than a traditional purchase, according to the news release.
Under the deal, Blessing would replace UnityPoint as the parent organization.
"We are excited to have this opportunity to work with the residents of the region," said Maureen Kahn, RN, president and CEO of Blessing Health System and Blessing Hospital. "We want to transform the healthcare system upon which they rely into one that will be available and relevant to the healthcare needs of the future."
Keokuk Area Hospital is a rural hospital that has struggled financially the last few years. To help shore up its finances, Blessing Health System said it plans to reopen a physician practice in the area and enhance the care available in the Keokuk hospital's emergency room.
Read the full news release here.