Memorandum of Understanding, Letter of Intent and Due Diligence

5/12/2020 - Princeton, Illinois

  • Memorandum of Understanding, Letter of Intent and Due Diligence

In July 2019, the Perry Memorial Hospital Board of Directors approved a Memorandum of Understanding (MOU) with OSF HealthCare. In August 2019, the City Council also approved the MOU. The MOU is a non-binding, exclusive confidentiality agreement that allows Perry Memorial Hospital to explore partnership options with OSF HealthCare. This allowed a deeper conversation on what a potential OSF HealthCare partnership may involve.

Under the MOU, Perry, the City and OSF HealthCare considered their potential options and, conditioned on the completion of an appropriate due diligence process, determined that a transfer of ownership was the most appropriate option.

A transfer of ownership would transfer full ownership of Perry Memorial Hospital to OSF HealthCare, including all assets. Since Perry Memorial Hospital is a city-owned hospital, the City Council would have to vote for the transfer of assets to occur. The name of the hospital would change, and the board of directors would become an advisory board. The Perry Foundation would become part of the OSF HealthCare Foundation; however, the current and future local foundation funds would remain committed to health care needs in the Princeton area.

Representatives of Perry Memorial and the City met with OSF HealthCare to determine whether the proposed affiliation or transfer of ownership would provide for the continuation of current and future health care initiatives and a stronger Perry Memorial Hospital for Princeton and its surrounding communities. After these discussions the Perry Board of Directors and the City Council members determined the next step and a Letter of Intent (LOI) was approved by both Perry and OSF HealthCare.

A LOI is a non-binding legal document that indicates the mutual interest that Perry and OSF HealthCare have in one another and to work in good faith as they move towards an agreement of a proposed transfer of ownership.

Currently, the parties are in the next phase of the due diligence process. The full due diligence process is expected to take up to 9 months to complete. The next press release will discuss what clinical care could mean for our community under an OSF HealthCare model.


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About Perry Memorial Hospital:

Perry Memorial Hospital is a municipally owned, 25-bed critical access facility. With a workforce of more than 370 people, Perry Memorial is one of Bureau County’s largest employers. June 17, 2020 marks the hospital’s centennial celebration representing 100 years of providing health care services.

About OSF HealthCare:

OSF HealthCare is an integrated health system owned and operated by The Sisters of the Third Order of St. Francis, headquartered in Peoria, Illinois. OSF HealthCare employs more than 23,600 Mission Partners (employees) in 147 locations, including 14 hospitals – 10 acute care, four critical access – and two colleges of nursing. Its physician network employs more than 1,500 primary care, specialist physicians, and advanced practice providers.