The Willmar, Minn.-based Rice Memorial Hospital board of directors approved a series of agreements Oct. 30 to create a regional healthcare entity in partnership with Willmar-based ACMC Health and St. Cloud, Minn.-based CentraCare Health, according to the West Central Tribune.
The Rice Memorial board also unanimously voted to recommend approval of the agreements to the Willmar City Council, which governs the hospital. Officials said the council is expected to tackle the issue Nov. 6.
Officials said the regional healthcare organization, Carris Health, will be operational Jan. 1, pending regulatory approval.
As part of the agreements, Carris Health will lease Rice Memorial for a period of 30 years, with an automatic renewal at 30 years and the option to purchase the hospital after 10 years. Carris Health will also be responsible for a $32 million investment into the hospital during the next 10 years.
The Carris Health board of directors will be composed of 10 members, four each from Rice Memorial and ACMC Health and two members from CentraCare Health. Carris Health must also maintain all services and procedures at the hospital, which will retain the Rice Memorial brand.
The organizations signed a letter of intent agreement to pursue an affiliation in May.