Brian Burnside, President/CEO of Carlinville Area Hospital & Clinics and Jim Allen, President/CEO of Karmak, announce to the public the plan for Carlinville Area Hospital to purchase the Karmak property before the end of the year. Photo provided.

By ERIN SANSON
Enquirer ~ Democratic Reporter

Community members and leaders were invited to the Karmak building on July 31 to hear from the CEOs of Karmak and Carlinville Area Hospital about a new agreement between the two companies. Carlinville Area Hospital will purchase the building from Karmak to provide expanded services.

The agreement was in the works for four months before Carlinville Area Hospital CEO Brian Burnside and Karmak CEO/President Jim Allen made the joint announcement. During the conference, Burnside said the hospital had been working on its master facilities plan, which included a $15 million expansion of the hospital site. The land purchase will allow for the same expansion of partnerships and services for a smaller amount.

The full press release reads as follows:

Karmak & CAH&C agree to purchase building

Karmak and Carlinville Area Hospital & Clinics are pleased to announce their agreement to transfer ownership of Karmak’s current location at 1 Karmak Plaza, including the building and surrounding land, to Carlinville Area Hospital & Clinics. The agreement is currently subject to regulatory and financial approvals, which are expected to be received later this year. This strategic acquisition is expected to significantly increase CAH&C’s operational capacity by providing the necessary space to continue expanding outpatient and clinical services in the region in the coming years. The purchase also aligns with Karmak’s vision for their current operating environment as they grow and expand their business.

“We believe the hospital is the right steward for our building and property,” said Jim Allen, CEO/President of Karmak. “Their vision aligns with the future potential of this property and community, and we are confident they have the resources to maintain the property now and in the future.” He continued, “Karmak has a strong connection to the Carlinville community, and we will continue to lease space at 1 Karmak Plaza. Our business is very successful, and this partnership with the CAH&C will allow it to continue that way.”

“This purchase allows us to advance our strategy of expanding and growing local healthcare services,” said Brian Burnside, President and CEO of CAH&C. “Adding this building and property to our portfolio will allow us to continue to provide expert care locally, expand our operations and consider strategic partnerships for service development. Utilizing this property will allow us to alleviate the space constraints currently present on the main campus in the most cost-effective manner.”

Karmak will continue to operate as an industry leader, but in more innovative ways to meet today’s environment for technology companies. “During COVID, our company was forced to work from home for a period of time, and that worked very well with today’s technology,” explained Jim Allen. “The nature of our business now requires a smaller physical footprint. We have such a beautiful building and location that we want to utilize its full potential. We believe CAH&C will do that well.”

CAH&C is committed to maintaining this property so that it continues to be an asset to the community. In addition to the clinical services offered at this location, the plan is to create community spaces for meetings, events and activities. The new property will also expand the current portfolio of facilities in Macoupin County, including Girard, Gillespie and Virden. By acquiring the property, CAH&C will be able to maintain its financial resources and continue its work to improve healthcare for patients throughout the region.

Both companies are currently completing customary closing and regulatory processes and expect the sale to be completed by the end of 2024.