Physician-owned Doctors' Hospital of Michigan in Pontiac, Mich., is expected to purchase the 35 percent stake in the hospital owned by Flint, Mich.-based McLaren Health Care Corp., according to a Crain's Detroit Business news release.
According to a member of the hospital's board, the relationship between McLaren and the physicians "did not work out" and the purchase of the stake is intended to keep the hospital open for the community, according to the report. McLaren reportedly wanted to move the hospital into bankruptcy.
The hospital lost $1 million in 2010 and lacks access to cash for capital improvements, according to the report. The hospital also experienced losses in both 2009 and 2008, the year McLaren and the physicians opened the facility.
The for-profit hospital is owned by 42 physician shareholders. They are currently negotiating with McLaren over its stake in the facility, which at the time of original investment was valued at $5 million.
Read the Crain's Detroit Business report on Doctors' Hospital of Michigan.
Read more coverage on Doctors' Hospital of Michigan:
- Doctors' Hospital of Michigan Will Delay Decision on Closure
- Physician-owned Doctor's Hospital of Michigan Plans To Restructure or Sell
According to a member of the hospital's board, the relationship between McLaren and the physicians "did not work out" and the purchase of the stake is intended to keep the hospital open for the community, according to the report. McLaren reportedly wanted to move the hospital into bankruptcy.
The hospital lost $1 million in 2010 and lacks access to cash for capital improvements, according to the report. The hospital also experienced losses in both 2009 and 2008, the year McLaren and the physicians opened the facility.
The for-profit hospital is owned by 42 physician shareholders. They are currently negotiating with McLaren over its stake in the facility, which at the time of original investment was valued at $5 million.
Read the Crain's Detroit Business report on Doctors' Hospital of Michigan.
Read more coverage on Doctors' Hospital of Michigan:
- Doctors' Hospital of Michigan Will Delay Decision on Closure
- Physician-owned Doctor's Hospital of Michigan Plans To Restructure or Sell