Affiliation discussions are officially underway between MidMichigan Health, a four-hospital system based in Midland, Mich., and Mackinac Straits Health System in St. Ignace, Mich.
Mackinac Straits, which includes a critical access hospital and several clinics scattered throughout northern Michigan, has reportedly been in affiliation negotiations with MidMichigan since this past fall. MidMichigan has also provided the rural health system with surgical consulting services.
Less than 20 percent of Michigan hospitals are still independent, according to a news release, and both organizations expect the affiliation will address economies of scale and general cost savings through collaborative care. Terms of a potential deal were not released, but the organizations said more details should come out this spring.
"For two organizations to come together successfully requires a strategic fit, a match of cultures and common objectives," Rod Nelson, CEO of Mackinac Straits, said in a news release. "I believe we are very closely aligned with MidMichigan. They believe in our mission of providing local access and quality healthcare to the families and communities we serve."
Last summer, MidMichigan signed an affiliation agreement with the University of Michigan Health System in Ann Arbor. Under that deal, UMHS acquired minority ownership of MidMichigan in exchange for limited branding rights. UMHS will own less than 1 percent of MidMichigan initially, but that share could grow to 20 percent in the future.
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