Ohio health system poised to add another hospital

Just a few months after announcing plans to come together, Kettering Health and Knox Community Hospital have reached a definitive agreement.

Kettering Health would acquire Knox Community Hospital, under the terms of the agreement. Knox Community Hospital is a 99-bed facility based in Mount Vernon, Ohio. Kettering Health and Knox signed the agreement late last week.

Regulators must still sign off on the transaction, but the systems say that they hope to finalize the deal by Jan. 1, 2027. Kettering Health and Knox Community Hospital first announced their letter of intent to merge in July.

Under the deal, Kettering Health has pledged to make “a significant capital investment” in the hospital to upgrade facilities. Although a dollar figure isn’t specified, Kettering Health cited plans to modernize the hospital’s equipment and technology, including plans to implement Epic’s electronic health records system.

Michael Gentry, CEO of Kettering Health, said that the system is “honored by the trust Knox Community Hospital has placed in Kettering Health and grateful for the opportunity to move forward together.

“We see tremendous opportunity to build on Knox Community Hospital’s strengths through continued investment, expanded resources and a shared commitment to compassionate care for the people of Knox County,” Gentry said in a news release. “We look forward to the work ahead as we begin this important next chapter.”

Based in Kettering, Ohio, a suburb of Dayton, Kettering Health is a faith-based system that operates 14 medical centers, more than 100 outpatient locations, and a medical group serving communities in western Ohio.

Knox Community Hospital has experienced some financial pressures. In 2024, the hospital posted a loss of $22 million, according to the Dayton Daily News. The hospital saw profits of about $1.6 million in 2023, but also experienced a loss of $17.4 million in 2022, the newspaper reported, citing IRS records.

Still, the hospital said in a message on its website that it is not in financial trouble and

“entered this process proactively and from a solid foundation. This exploration was about planning ahead, investing in the future and ensuring the hospital remains strong for years to come.”

Bruce D. White, president and CEO, Knox Community Hospital, said joining Kettering Health will give the hospital access to more resources.

“This agreement moves us closer to a future that builds on the strengths of Knox Community Hospital while giving us greater resources to grow and meet the changing needs of our community,” White said in a news release. “Kettering Health shares our commitment to keeping care local, supporting our physicians and employees, and investing in the services and technology our patients need.”

Knox Community Hospital said it evaluated other proposals for partnerships, but the organization said Kettering Health reflected its values and also has a long history of serving Ohio.

Under the agreement, Kettering Health is also making commitments to maintain the workforce. Knox said on its website, “Kettering Health intends to offer continued employment to substantially all active employees after closing, subject to standard requirements.”

Another Ohio hospital system recently gained new ownership. On Oct. 1, UPMC finalized a deal with CommonSpirit Health to acquire the Trinity Health System, based in Steubenville, Ohio. Trinity operates four hospitals, and the system is now known as UPMC Trinity.

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