Southern Indiana Business Report
WASHINGTON – Daviess Community Hospital has completed a management services agreement with Evansville-based Deaconess Health System. Leaders from the two organizations held town halls last week with employees, outlining the new agreement.
Deaconess Health System Chief Executive Officer Shawn McCoy and Daviess Community Hospital CEO Justin D. Harris spoke with DCH employees about what the change means for patients, staff and the community. The sessions were followed by an open Q&A.
The agreement went into effect Sept. 28. According to a news release from DCH, it will strengthen care locally while maintaining DCH’s local ownership and governance.
“This is an exciting step forward for Daviess Community Hospital,” Harris said. “Through Deaconess’ management support, we’ll gain added clinical depth, operational expertise and access to more specialists — all focused on keeping care close to home. What makes our hospital special — our people, our commitment to excellent care and our focus on this community — will not change.”
Harris emphasized several priorities that staff will see in the coming months:
- More connected specialty care through collaboration with Deaconess sister hospitals to improve referral pathways and grow local services.
- A unified electronic health record, with DCH transitioning to Epic in 2026 to streamline information-sharing, reduce duplicate paperwork and support safer, more seamless care.
- Operational support from Deaconess’ management team, including Healthcare Resource Solutions for revenue cycle services, while DCH remains DCH – the hospital’s name, local identity and governance stay intact.
- Expanded in-network options for employees, with Deaconess providers included on the DCH employee health plan. Additional benefits details will be shared by HR during open enrollment communications.
“Today was about transparency,” Harris said in a statement. “Our teams deserve clear answers about what’s changing – and what isn’t. Management is not ownership. The Board of Governors retains local control, and our day-to-day mission remains the same: delivering the right care, in the right place, close to home.”
During the Q&A, staff asked about timelines and care coordination. Leaders noted the hospital will continue to share updates as milestones approach, including public communications this fall and detailed Epic planning in 2026.
Harris thanked employees for their engagement. “Your dedication and compassion are the foundation of DCH,” he said. “With Deaconess’ support and your expertise, we’re moving forward – together – to strengthen access, quality and experience for the people of Daviess County and the surrounding communities.”
About DCH, Deaconess
Daviess Community Hospital is a 48-bed hospital in Washington. It has seven specialty clinics and seven outpatient clinics.
Deaconess Health System serves residents of southwestern Indiana, western Kentucky and southeastern Illinois. According to its website, the system consists of 20 wholly owned, joint ventured, sponsored or affiliated hospital locations situated throughout the Tri-State.
Deaconess was named to Forbes’ list of America’s Best-In-State Employers in 2023, 2024 and 2025. US News ranked Deaconess No. 4 in its ratings of Best Regional Hospitals.