Mercy Medical Center-Des Moines will buy Skiff Medical Center, adding a fourth hospital to its Iowa affiliates.
The acquisition expected to be completed by July 1, according to a Mercy spokesman.
Financial details were not disclosed.
Mercy will acquire Skiff's assets and assume its debt and future liabilities. It plans to invest $7 million in the hospital during the next seven years, enhancing the hospital's cardiology, orthopedics and cancer treatment capabilities.
Skiff will become a fully-owned Mercy hospital. No name change has been announced.
The 48-bed hospital in Newton, Iowa, offers basic emergency care, surgery, a diagnostic lab, a rehab clinic and other services. The acquisition would also include a medical office building and a rehab clinic.
The development of integrated networks is essential to improving patient safety, encouraging innovation and improvements, reducing costs and providing new opportunities to deliver care in inpatient and outpatient settings, according to Bob Ritz, president of Mercy Medical Center.
The May announcement follows months of review by both organizations.
Mercy Medical Center – Des Moines, an 802-bed acute care, not-for-profit Catholic hospital, is a member of the Mercy Health Network.
It employs more than 7,000 in Iowa. Mercy is also affiliated with more than a dozen rural community hospitals.