September 30, 2025 –
FHN announced plans to affiliate with Mercyhealth during a press conference in Freeport today. By joining Mercyhealth, FHN will benefit from greater economies of scale, creating opportunities for more efficient use of resources, cost savings and reinvestment. Those savings will be used to enhance patient care, expand services, and upgrade facilities and technology in the FHN service area.
“It is important to the communities we serve that we were proactive in finding a strong, advanced system that will continue to expand and grow. By joining forces with Mercyhealth, we are taking an active step to preserve and strengthen care for our patients,” said Mark Gridley, FHN President & CEO. “In Mercyhealth we have found an organization that shares our strong history of providing care in rural communities and can also provide our patients with greater access to Mercyhealth's advanced clinical expertise and specialty care centers.”
FHN has served the communities of northwest Illinois for more than 120 years. Like other independent systems, it continued to struggle in today's health care environment where currently less than 24% of US hospitals remain independent. The vast majority of US hospitals are now part of larger health care systems, reflecting a long-term trend of consolidation to preserve and enhance local services.
The transaction will provide patients with a broader range of services and a stronger, more connected system of care that links rural community care centers to Mercyhealth's Tertiary care centers.
“I have a great deal of respect for Mr. Gridley. He kept the facility operating independently in a tough economic environment where more than 750 hospitals nation-wide are at risk of closing, including 16 in Illinois,” said Mercyhealth President & CEO Javon Bea. “This decision ensures that FHN's legacy of service and high-quality patient care continues long into the future.”
As part of the agreement, Mercyhealth has committed to investing $100 million in FHN over the next five years. These funds support major capital projects, including a new linear accelerator for the Leonard C. Ferguson Cancer Center at FHN Memorial Hospital and a robotic surgical system, while also strengthening facilities and expanding services for the area.
Both organizations recognize FHN has a strong tradition and identity in the communities it serves. That history will be honored through the name Mercyhealth FHN, reflecting both its legacy and its future as part of Mercyhealth.
The transaction will go through customary regulatory and closing conditions, which are anticipated to be completed by December 31, 2025.
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Mercyhealth Service Area with FHN Affiliation