Peoria, Ill.-based OSF HealthCare will purchase two of Chicago-based Presence Health's facilities in southern Illinois for a combined $185 million, according to The News-Gazette.
OSF will purchase Presence Covenant Medical Center, a 206-bed facility in Urbana, for $111 million, and will acquire Presence United Samaritans Medical Center, a 174-bed hospital in Danville, for $74 million, according to recent documents filed with the Illinois Health Facilities and Services Review Board cited by The News-Gazette.
OSF officials will continue to operate both hospitals for at least eight years after the sale closes, which officials expect to occur on or around Feb. 1, 2018, according to regulatory filings. However, the health system may close the facilities after five years if OSF officials determine they cannot continue operating the hospitals "without undue risk," the report states.
The applications also specify OSF will establish community boards for the hospitals and implement standard charity care policies at both facilities. Officials will also reportedly keep the medical staff at both locations, and offer employment opportunities to eligible Presence Health employees affected by the transition.
Once the transaction is complete, Presence Covenant will transition to OSF HealthCare Heart of Mary Medical Center, while Presence United Samaritans will transition to the OSF HealthCare Sacred Heart Medical Center brand.
The documents filed with IHFSRB request the transaction be exempt from a state process requiring the health systems' show a need for the acquisition, according to the report.
OSF HealthCare and Presence Health signed a letter of intent for the deal early last month.