In November, Bloomington Hospital said it was considering the deal with Clarian. Such partnerships have become common nationally, as smaller hospitals seek to align themselves with larger organizations with greater financial and medical firepower.
The governing body, the Local Council of Women, founded the hospital with 10 beds more than 100 years ago. It now has 355 beds.
A partnership with Clarian would help Bloomington Hospital in its plans to develop a nearby site, which could include outpatient centers and a replacement facility for its current one on West Second Street.
Clarian would hold 51 percent of seats on Bloomington Hospital's board.