Exploring a Strategic Partnership

Supporting long-term sustainability while preserving independent, local care

Community Hospital and Montrose Regional Health (MRH) have signed a Letter of Intent to explore a partnership through the creation of a new tax-exempt, nonprofit organization 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. 

The goal of this potential partnership would be to preserve what both organizations are already doing well, caring for patients, while strengthening capabilities around non-clinical improvements 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.

What we are exploring:

If finalized, this partnership would allow both hospitals to work together in targeted, non-clinical areas while maintaining independent governance and clinical operations.

  • Both hospitals would remain independent, locally governed and tax-exempt, nonprofit organizations with their own boards, leadership, employees, finances, and facilities.
  • The collaboration would focus on operational capabilities such as information technology alignment, group purchasing, long-term planning, and revenue cycle improvements.
  • Efficiencies gained through this partnership are intended to support affordability and long-term access to care.

Both organizations would continue to compete for patients and talent as we do today, and our patients, caregivers, and families will continue to have meaningful choice in where they receive care, build careers, and offer support.

What happens next:

  • This is an exploratory phase, and many details are still being evaluated.
  • 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.
  • Both hospitals are committed to transparency throughout this process and welcome questions and feedback from caregivers, patients, and community members as conversations continue.

Frequently Asked Questions:

A: 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.

A: 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.

A: 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.

A: 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.

A: 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. 

A: At this time, we do not anticipate any changes to clinical services. 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.

A: 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.

A: 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.

A: 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.

A: 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.

A: 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.

The proposed structure includes a six‑member Board, with three members from each organization, ensuring balanced representation and shared oversight. This commitment to balanced representation and continued independence is reflected in the proposed bylaws, where, for example, a tied vote between members would constitute no action being taken.

Importantly, the parent company would not control either Community Hospital or MRH’s operations, budget, leadership or clinical services. Each organization would continue to maintain its own local Board and leadership team.

Looking for more? Download the full FAQ.

Katie Klossner
Director of Marketing & Public Relations at Montrose Regional Health
[email protected]

Karen Martsolf
Chief Marketing & Communications Officer at Community Hospital
[email protected]