McDonough District Hospital said it has reached an agreement in principle with Lifeguard Ambulance to continue providing ambulance service in McDonough County.
The hospital announced the agreement in a release issued late Wednesday afternoon.
The one-year contract is scheduled to begin on May 1.
Specific terms have not been finalized or released.
The hospital announced last month that it gave Lifeguard a 45-day notice that it planned to end their contract that began in January.
At the time, MDH President and CEO Bill Murdock said the pact would have cost the hospital $3.1 million over five years, and that the hospital is receiving "not a penny" from the state or federal government to provide ambulance service.
"MDH is in a precarious situation being a rural, independent hospital where we're financially challenged, and looking at all of our non-core services, is what's really driving this," Murdock said.
He also said reimbursements are falling short, which added to the financial pressures on the hospital. For example, Murdock said Medicare is paying the hospital just 83-cents on the dollar.
In Wednesday's release, Murdock said he appreciated Lifeguard's willingness to work with the hospital to restructure the contract.
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