REDWOOD FALLS -- Another hospital in southwest Minnesota is joining Carris Health, a recently formed subsidiary of CentraCare Health. The Redwood Area Hospital and the city of Redwood Falls have announced that they have taken the initial steps toward joining the new regional health system.

Rice Memorial Hospital in Willmar, ACMC, and Centracare established the partnership in January of this year.

The Redwood Area Hospital and the city of Redwood Falls have spent the past four months looking at a potential partnership with Carris Health.

A letter of intent outlines a transfer of owner to Carris Health, with the health care system committing to invest $60 million over the next 10 years, including a new medical campus in Redwood Falls that includes a new hospital and clinic.

The anticipated closing date on the transfer of ownership is December 31st. Planning for the new medical campus in Redwood Falls will continue into the second half of this year.