North Oakland, a non-profit formerly known as Pontiac General Hospital had been under financial duress, losing $13.4 million in 2007, according to Crain’s Detroit Business. It had been in Chapter 11 bankruptcy since late August and had closed in late October (http://www.hospitalreviewmagazine.com/news-and-analysis/business-and-financial/credit-crunch-forces-michigan-hospital-to-close.html).
North Oakland will receive up to $5 million from McLaren, about $2 million from Oakland Physicians, which is made up mostly of North Oakland’s staff, and about $6 million from the state’s Medicaid fund to pay for the purchase, according to The Flint Journal.
McLaren acquires 35 percent of the hospital in the transaction. Oakland Physicians will help run the facility, while the city of Pontiac will receive 5 percent of any profits earned by the 336-bed hospital, which becomes a for-profit as a result of the sale, according to the Detroit Free Press report.
Read the Detroit Free Press coverage of the North Oakland Medical Centers’ sale.
Read more about North Oakland’s past financial troubles .
Read The Flint Journal’s coverage of the North Oakland Medical Centers’ acquisitions .
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