BAGLEY, Minn.—Sanford Health took a step toward buying Clearwater Health Services of Clearwater County, Minn., by signing a letter of intent, according to a Sanford news release. The nonbinding agreement could lead to Sanford acquiring Clearwater's assets and leasing its properties. The two parties will work together on additional analyses, due diligence and communications over the next several months, according to the release. Clearwater serves Minnesota's North Woods and includes 95-bed Clearwater County Memorial Hospital in Bagley, Minn., an attached clinic, ambulance services and a clinic in Clearbrook, Minn. “This partnership with Sanford will supply us with the expertise needed to provide a stable environment for patients and staff,” said Daniel Stenseng, Clearwater County board chairman. “Sanford has a long history of successful healthcare management that will allow staff to focus on caring for patients.” Clearwater County owns the hospital and its assets. It already holds a management agreement with Sanford, which is based in Fargo, N.D., and Sioux Falls, S.D.

By joining Iowa Health System, Methodist says it will have expanded resources.

PEORIA, Ill.—Methodist Health Services Corp. officially joined the Iowa Health System as its eighth senior affiliate as planned. Methodist adds 298 staffed beds to Des Moines-based IHS. Methodist officials tout the expanded resources the deal affords them. They will retain its board of directors, which expands to 21 seats. Methodist's leadership team remains the same. “This was the right decision at the right time,” said Debbie Simon, Methodist's interim president and CEO. “We chose IHS because its model promotes local control so we can continue to make decisions that are best for our patients, community, physicians and employees.” The deal between the two not-for-profits won't include payments or assumptions of debt. IHS will commit $175 million to strategic capital incentives, according to a release. Officials said the deal makes IHS the fifth-largest nondenominational health system in the U.S. Methodist includes one hospital, while Iowa owns 10 hospitals and runs 13 under contract.