Modern Healthcare - - REGIONAL NEWS -

— A deal for North­ern Michi­gan Re­gional Hos­pi­tal to join Mclaren Health Care Corp., Flint, Mich., is of­fi­cial. The 214-bed Pe­toskey hos­pi­tal last week be­came the ninth in the Mclaren sys­tem. The par­ties signed a let­ter of in­tent in July. North­ern Michi­gan’s board will re­tain con­trol of hos­pi­tal de­ci­sions, ac­cord­ing to a news re­lease. Fi­nan­cial terms of the agree­ment weren’t shared. “This de­ci­sion is the best choice for our hos­pi­tal and pa­tients in north­ern Michi­gan,” North­ern Michi­gan Pres­i­dent and CEO Reezie Devet said in the re­lease. North­ern Michi­gan posted op­er­at­ing losses in 2008, 2009 and 2010, with an $8.1 mil­lion deficit in 2010. Mclaren earned $51.1 mil­lion in op­er­at­ing in­come on $2.1 bil­lion in rev­enue in its fis­cal 2011, which ended Sept. 30, ac­cord­ing to a spokesman. North­ern Michi­gan’s board has sought an in­vestor for years and in 2009 signed a let­ter of in­tent with five-hos­pi­tal Spec­trum Health in Grand Rapids, Mich. Talks never pro­gressed and ended later that year.

DE­FI­ANCE, Ohio— Catholic Health Part­ners af­fil­i­ate Mercy, Toledo, Ohio, now wholly owns 23-bed Mercy De­fi­ance Hos­pi­tal and the 30-physi­cian Mercy De­fi­ance Clinic. Fi­nan­cial terms were not dis­closed. De­fi­ance Clinic’s 270 em­ploy­ees and a clinic site in Napoleon, Ohio, are part of the deal. Mercy De­fi­ance Hos­pi­tal had been op­er­ated un­der a 50/50 split be­tween Mercy and the clinic un­der the terms of a deal agreed on eight years ago. Of­fi­cials said the move comes amid prepa­ra­tions to cre­ate an ac­count­able care or­ga­ni­za­tion. “Ad­vanc­ing this model of care for peo­ple in north­west Ohio is at the heart of our mis­sion of im­prov­ing com­mu­nity health, and we are con­fi­dent about the ben­e­fits it will bring for en­hanced qual­ity, com­mu­ni­ca­tions be­tween all providers and ef­fi­ciency of time and re­sources to ben­e­fit pa­tients,” Mercy Pres­i­dent and CEO An­drea Price said in a news re­lease.

North­ern Michi­gan Re­gional Hos­pi­tal is now the ninth in the Mclaren sys­tem.

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