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Michigan bill could ease private purchases of community hospitals

The Michigan Senate unanimously passed a House measure that would streamline the process for private companies to buy community hospitals, MiBiz reported.

The House approved House Bill 5876 in April on a 76-23 vote, according to the report. It now needs Gov. Gretchen Whitmer's signature to become a law.

If signed, the legislation would remove the requirement for another public vote to approve the sale or transfer of ownership of a community hospital or health system to a private, nonprofit company if the public has already approved that public-to-private sale or transfer before, according to the report.

The change could make it easier for Grand Haven, Mich.-based North Ottawa Community Health System to merge with Livonia, Mich.-based Trinity Health, according to MiBiz. The organizations signed a letter of intent in March.

"[North Ottawa] and other small and mid-sized hospitals around the state are having to rethink how we position our health systems to remain accessible for our patients," North Ottawa told MiBiz. "We are grateful for our legislators' understanding of the issues and for their work to help remove redundant barriers that keep hospitals from making critical business decisions. We are pleased that the proposed legislation is now making its way to the governor."

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