Sponsored by VMG Health | gregk@vmghealth.com | 214.369.4888

Port Huron Hospital Signs Deal to Join McLaren Health Care

Flint, Mich.-based McLaren Health Care will soon have 12 hospitals in its system, as Port Huron (Mich.) Hospital signed a letter of intent to join McLaren.

The board of Blue Water Health Services, the parent of 186-bed Port Huron Hospital, evaluated eight potential partners during a six-month review process, ultimately choosing to affiliate with McLaren. The two organizations will now go through due diligence, which will take "several months," before signing a definitive agreement.

Financial terms of the deal were not disclosed. However, McLaren is expected to make "substantial" capital investments in Port Huron Hospital, including a new acute-care tower.

Port Huron Hospital officials cited reduced Medicare reimbursements, increased competition throughout the region and a "changing population" as reasons to affiliate with a larger health system. Previously, Board Chairman David Thompson said the hospital is in good financial shape with a strong operating margin, making the time ripe to choose a partner on its own terms.

"Our position of strength makes this the optimal time to consider joining a larger organization because we stand to obtain the greatest promise of future success," the board said in a news release.

More Articles on Hospital Transactions:
Merger Between Lehigh Valley, Greater Hazleton Systems Receives Clearance
WestCare Health System, Duke LifePoint Healthcare Reach Acquisition Agreement
University of Maryland Finalizes Acquisition of Upper Chesapeake Health

© Copyright ASC COMMUNICATIONS 2015. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.


New from Becker's Hospital Review

100 Great Hospitals in America 2015 


Top 40 Articles from the Past 6 Months