Mercyhealth recently announced that it has finalized an affiliation agreement with FHN, effective Jan. 1, 2026. To honor the strong tradition and identity in the communities it serves, FHN Memorial Hospital has been named Mercyhealth FHN Hospital.

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 fewer than 24% of U.S. hospitals remain independent, according to a Mercyhealth news release. The vast majority of U.S. hospitals are now part of larger health care systems, reflecting a long-term trend of consolidation to preserve and enhance local services.

With this affiliation, Mercyhealth FHN will benefit from greater economies of scale, creating opportunities for more efficient use of resources, cost savings and reinvestment, according to the release. Those savings will be used to enhance patient care, expand services, and upgrade facilities and technology in the Mercyhealth FHN service area, according to the release.

“Mercyhealth is committed to providing the best care possible for the Freeport community and the surrounding rural areas,” Mercyhealth President/CEO Javon Bea said. “We can also provide patients with greater access to Mercyhealth’s advanced clinical expertise and specialty care centers.”

As part of the agreement, Mercyhealth has committed to investing $100 million in Mercyhealth 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 Mercyhealth FHN Hospital and a robotic surgical system, while also strengthening facilities and expanding services for the area, according to the release.