Port Huron (Mich.) Hospital and McLaren Health Care in Flint, Mich., have signed a definitive acquisition agreement, making Port Huron Hospital the 12th hospital within the McLaren system.
The deal is effective May 1. The 186-bed hospital had been looking for a partner for the past year and signed a letter of intent to join McLaren this past December. Port Huron Hospital officials cited reduced Medicare reimbursements, increased competition throughout the region and a "changing population" as reasons to affiliate with a larger health system.
As part of the agreement, McLaren will make several capital investments in Port Huron Hospital, including a new cancer center and a new inpatient tower. Hospital officials expect to break ground on the cancer center early next year, while the inpatient tower project will begin later in 2015.
"Joining McLaren Health Care allows us to remain a nonprofit, retain local decision-making and secure the future of high-quality, accessible healthcare for the local community," Port Huron Hospital President and CEO Tom DeFauw said in a news release. "With McLaren Health Care's support and resources, we will be better equipped to manage the operational demands stemming from the [Patient Protection and] Affordable Care Act."
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