Northern Michigan Regional Hospital has joined Flint-based McLaren Health Care, effective immediately. The process to evaluate a relationship began with a letter of intent in July. The letter of intent committed both parties to negotiate exclusively and confidentially, precluding discussion with other potential partners. With the due diligence process complete, the Boards of Trustees at both organizations have voted to unanimously approve this new relationship, whereby Northern Michigan Regional Hospital joins a network of nine other Michigan hospitals as a subsidiary of McLaren Health Care.
“This is a tremendous day for our hospital, and most importantly, for the communities we serve. Today, we strengthen the future of Northern Michigan Regional Hospital, retaining local control while joining forces with one of the top 25 integrated healthcare systems in the United States,” said Reezie DeVet, President and CEO of Northern Michigan Regional Hospital. “Joining McLaren Health Care is consistent with our strategic plan to develop integrated partnerships for resource sharing and to ensure the viability of our organization into the future.”
With more than $4.0 billion in annual revenue and 2011 double “A” credit ratings from both Moody's Investor Services and Fitch Ratings, McLaren Health Care has sustained a revenue growth rate of 20 percent per year for nearly 20 years.
“This decision is the best choice for our Hospital and patients in northern Michigan,” DeVet said. “One of the key benefits is the shared belief that the provision of healthcare is local. We will continue to be governed by our local Board of Trustees, and all funds raised by our Foundation will remain local. As in the past, Northern Michigan Regional Hospital will make business decisions locally based on the needs of the communities we serve. At the same time, we gain the support of a large, successful, prestigious healthcare system. It is truly a win-win for both organizations.”
“We are pleased to have gained the confidence of the management, physicians, and Board of Trustees at Northern Michigan Regional Hospital to pursue a collaborative relationship that supports their continued growth and success,” said Philip A. Incarnati, President and CEO of McLaren Health Care. “We share the same perspective for the provision of healthcare services moving into the next decade – deliver high quality care that is measureable, accessible, and affordable.”
About Northern Michigan Regional Hospital Northern Michigan Regional Hospital is a 202-bed regional referral center located in Petoskey, serving residents in 22 counties across northern Lower Michigan and the eastern part of the Upper Peninsula. A medical staff of nearly 200 physicians represents nearly all medical and surgical specialties, enabling full-service care with an emphasis on heart, cancer, orthopaedics, and neuroscience services. Additional information can be found at northernhealth.org.
About McLaren Health Care McLaren Health Care is a fully integrated health network, committed to quality, evidence-based patient care and cost efficiency. The McLaren Health Care system includes ten hospitals, ambulatory surgery centers, imaging centers, freestanding dialysis centers, a regional network of cancer centers and providers, an employed primary care physician network, assisted living facilities, commercial and Medicaid HMOs, home healthcare and hospice, durable medical equipment, retail pharmacy services, and a wholly-owned medical malpractice insurance company.