Community Hospital and Montrose Regional Health (MRH) announced the signing of a Letter of Intent (LOI) to explore creating a new tax-exempt, nonprofit entity designed to strengthen community-based health care across western Colorado while maintaining each hospital’s independence. Importantly, this marks the beginning of an exploratory process. No definitive agreement has been finalized. 

No. This is not a merger or a takeover. Each organization would continue as a tax-exempt, nonprofit organization embedded in and accountable to its community. Both hospitals would remain independent, locally governed and tax-exempt nonprofit organizations with their own boards, leadership, finances, medical staff, employees and facilities.

Community Hospital and MRH are like‑minded organizations with shared values around clinical excellence, financial responsibility and local independence. Both organizations believe collaboration in targeted, non-clinical capabilities can create operational efficiencies while preserving independent governance and local control.

As health care evolves nationally, regionally and locally, it is creating challenges like increased financial pressures, workforce obstacles and regulatory complexity. Acting proactively would allow both organizations to strengthen long-term sustainability while options for our patients and people remain strong. This potential step allows both Community Hospital and MRH to continue operating independently, while championing a competitive health care landscape and increased access and affordability for our patients and communities.

The goal of this partnership would be to preserve what both organizations are already doing well — caring for patients — while strengthening our capabilities around non-clinical initiatives as we navigate significant industry challenges and pressures together. By working together in specific operational areas, both hospitals could improve efficiency, reduce costs and reinvest in patient care. This potential partnership is intended to support long-term affordability and access, while allowing both Community Hospital and MRH to continue operating independently.

At this time, we do not anticipate any changes to clinical services because of this announcement. The potential collaboration would focus on non‑clinical capabilities, while each hospital continues to operate independently to meet the needs of its community. The intent is to strengthen local services and expand specialty access where appropriate, not shift care away from our communities.

Our people are critical to our success and fulfilling our mission, now and well into the future. This potential partnership is about strengthening, not diminishing, that foundation. At this time, we look forward to strengthened employment opportunities and economic growth for our communities as part of this potential partnership.

No. Both organizations are committed to high-quality, local care, and see collaboration as a way to build upon our aligned but individual cultures and missions. This partnership would allow us to protect these core parts of who we are in a rapidly changing health care environment while preserving patient choice and local independence.

At this time, the new organization would collaborate on non‑clinical capabilities, such as information technology alignment, group purchasing, long-term planning and revenue cycle optimization, to create economies of scale and improve overall care quality and efficiency.

The proposed structure includes a six‑member Board, with three members from each organization, ensuring balanced representation and shared oversight. Each organization would continue to maintain its own local Board and leadership team.

No. Each hospital would continue to generate and retain its own revenues, manage its own expenses and operate as a separate legal and financial entity.

No. Each hospital would continue to own or lease its own facilities and operate independently.

The organizations anticipate reaching a definitive agreement later this fall, with the goal of finalizing the partnership by the end of the year, following a thoughtful and transparent process. We are excited by a potential opportunity to improve health care in western Colorado and eastern Utah and will share updates as conversations continue.

At this stage, the organizations have signed a Letter of Intent (LOI), which reflects a shared interest in collaboration. Any final agreement would be subject to further evaluation and approval by Community Hospital and MRH through the anticipated process.

If no definitive agreement is reached, each organization will continue as they are now. We are committed to transparent communication as we move forward. 

Achieving improved non-clinical capabilities, like aligned information technology and group purchasing, requires the use of a parent organization under federal regulations. A formal nonprofit structure allows for deeper collaboration while maintaining compliance with regulatory requirements.

Both hospitals are committed to transparency throughout this process. Employees, patients and community members who have questions may contact Karen Martsolf, Chief Marketing/Communications Officer for Community Hospital or Katie Klossner, Director of Marketing and Public Relations for Montrose Regional Health. We will continue sharing updates as available.

The Letter of Intent (LOI) is subject to a master confidentiality agreement required for antitrust law compliance. Even if it could be released publicly, it merely reflects an exploratory, non-binding framework between the two organizations. Its purpose is only to establish a framework for discussion of definitive agreements and is not a public document.

What we can share is a commitment to the integrity of the process and maintaining the best interests of our patients, people and communities. We are committed to transparent communication as we have details available to share.

No. The LOI does not transfer ownership, operational control, or governance of either Community Hospital or Montrose Regional Health to any other organization. It simply begins a process to explore whether the two organizations could create a new tax-exempt, nonprofit entity designed to strengthen community-based health care across western Colorado while maintaining each hospital’s independence.

No. While no decisions about the parent organization’s operations have been finalized, both Community Hospital and Montrose Regional Health agree, and the LOI itself is clear, that the parent organization will not control Community Hospital or Montrose Regional Health’s budget, leadership, services or operations. The LOI simply begins an exploratory, due-diligence process to explore how the organizations might collaborate. Should the partnership proceed, both organizations will remain independent, locally governed and tax-exempt nonprofit organizations with their own boards, leadership, finances, medical staff, employees and facilities.

No. Some recent statements have included information about the LOI that is incorrect or incomplete. The specific claims circulating about rights to deny, eliminate or control either system’s budget, leadership, services or operations are not provisions contained in the LOI. It does not transfer ownership or operational control of either organization, nor does it establish a final governance structure. Even if the organizations ultimately decide to move forward with a partnership, both Community Hospital and Montrose Regional Health will continue to operate independent, locally governed and tax-exempt nonprofit organizations with their own boards, leadership, finances, medical staff, employees and facilities.

No. The board of the new entity will have no right to impose, change or deny hospital budgets, leadership or a strategic plan for either MRH or Community Hospital. In fact, the word “deny” is not referenced anywhere in the LOI. Each organization will prepare their own budgets, outline their own strategic plans and nominate and select their own leadership, then present those to the parent company. The parent company will have no authority to deny or stop any budget or strategic plan presented or CEO selected.

No. Under the proposed partnership, the parent company will not have any power to approve or deny MRH or Community Hospital’s existing clinical services. While the parent company may suggest new clinical services to either Community Hospital or MRH, each organization will continue to manage their own clinical care offerings.