(STURGIS) – A tentative agreement has been reached to have an organization purchase Sturgis Hospital.

During a special meeting Monday morning, the Sturgis City Commission voted unanimously to approve a Letter Of Agreement to have Asker Corporation purchase Sturgis Hospital. In July, Sturgis Hospital and the City started negotiating with Asker to take over ownership and running of the Hospital.

Sturgis City Manager Andrew Kuk says the negotiations with Asker were going on while the City and the Hospital were also talking with Insight. When those discussions came to an end, the talks with Asker intensified.

Kuk says during the original discussions with Asker, they were going to pay $1.5 million upfront to the City and then $1.5 million over the next five years. When the negotiations started again, Kuk says that amount increased. LINKC.

Omar Elias of Asker Corporation says they have several agreements with Sturgis Hospital including the medical staff and other pieces. If everything moves forward, the facility would be known as Asker Sturgis Hospital. Elias says Asker would look at what they could add to the Hospital and restore the community’s confidence in the facility.

Both the Sturgis Building Authority and the Sturgis Hospital Board of Directors approved the Letter Of Agreement during their meetings Monday afternoon.