LifePoint Hospitals in Brentwood, Tenn., has finalized two separate hospital transactions — a joint venture with Portage Health in Hancock, Mich., and an acquisition of Bell Hospital in Ishpeming, Mich.
Michigan Attorney General Bill Schuette reviewed and approved both transactions.
Under the Portage Health agreement, LifePoint will own 80 percent of the system, while Portage Health will maintain a 20 percent ownership stake. Governance will be shared equally between both parties. In addition, LifePoint will invest $60 million for capital improvements at the 36-bed hospital, and the for-profit hospital operator will also create a $40 million charitable foundation for the community's health needs. LifePoint and Portage Health signed the initial letter of intent to form the joint venture in February and signed a definitive agreement in August.
Under the Bell Hospital agreement, LifePoint acquired full ownership of the 25-bed critical access hospital. LifePoint will make $5 million in capital investments at Bell Hospital over the next decade, including a new health IT infrastructure and facility upgrades. Proceeds from the transaction cleared the hospital's debt, and Bell Hospital is now a for-profit, tax-paying entity. Officials signed a letter of intent in March and a definitive acquisition agreement in June.
Bell Hospital CEO Floyd Bounds and Portage Health President and CEO Jim Bogan said in news releases they are "excited" to become part of the LifePoint network, which now encompasses 60 hospitals. Both hospitals are in Michigan's Upper Peninsula and are near LifePoint's Marquette (Mich.) General Health System, which it acquired last year for $483 million through its Duke LifePoint joint venture.
More Articles on Hospital Transactions:
Penn State Hershey, PinnacleHealth Explore Further Collaboration
Judge Approves Prime Healthcare Purchase of Landmark Medical Center
Allina Health, District One Hospital Sign LOI to Affiliate