(COLDWATER) – ProMedica Coldwater Regional Hospital is going to be sold.

ProMedica officials announced Wednesday they have entered into an asset purchase agreement with American Healthcare Systems, which intends to acquire the hospital.

American Healthcare Systems is a for-profit organization with health care management expertise. The organization prides itself on transforming hospitals by emphasizing accessibility to outstanding quality of care for all its patients and community members.

Financial challenges that have worsened since the start of the COVID-19 pandemic are at the root of ProMedica’s decision to sell the hospital.

Alan Sattler, President of ProMedica Coldwater Regional Hospital, says the pandemic and its fallout, including staffing shortages and rapidly rising expenses, have further strained finances at hospitals across the country, and Coldwater Regional Hospital has been no exception. Sattler says with the financial strain ProMedica has been experiencing, especially since the pandemic, it has become necessary for them to revisit the options for Coldwater Regional Hospital.

American Healthcare Systems has a plan to help ensure the sustainability of Coldwater Regional Hospital, and it is expected to focus on maintaining or expanding hospital services. Details about the organization’s plan will be forthcoming pending the sales transaction approval and completion.

Sattler says considering the current health care landscape where 30% of rural hospitals are at risk of closing in the near future, this sales transaction is good news for Coldwater. He says they believe that transitioning the hospital to American Healthcare Systems is the best option to help ensure that the Coldwater community continues to have acute care close to home.

The transaction is subject to regulatory approvals and expected to be completed in four to six months. During the transaction phase, ProMedica will continue to fully support the hospital, as it continues to deliver clinical excellence and compassionate care in the Coldwater community. Transaction updates will be provided as appropriate throughout the process.