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University of Michigan Health System Gains Affiliation, Part-Ownership in MidMichigan Health

The University of Michigan Health System, based in Ann Arbor, announced it has signed an affiliation agreement with Midland, Mich.-based MidMichigan Health, granting UMHS a minority ownership interest in MidMichigan in exchange for limited branding rights. Fulfilling a letter of intent signed last August, three-hospital UMHS will also receive a minority equity interest in four-hospital MidMichigan and two of the 17 seats on MidMichigan's board, which will be filled by U-M Hospitals and Health Centers CEO Doug Strong and U-M Faculty Group Practice Executive Director David Spahlinger, MD. In return, UMHS will permit the use of its block "M" in MidMichigan's logo to denote the affiliation.

This is the first affiliation in which UMHS takes part-ownership in its partner, according to a report by AnnArbor.com. UMHS will own less than one percent of the system initially, but that share could grow to 20 percent in the future, according to the report. Financial details of the deal were not disclosed in a UMHS news release.

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