A Medical Device Daily Staff Report
The Portage Health (Hancock, Michigan) board has signed a definitive agreement to form a joint venture with LifePoint Hospitals (Brentwood, Tennessee). The agreement, which includes $60 million in capital investments over the next 10 years by the new joint venture, would allow Portage Health to expand and enhance its services to better meet the healthcare needs of its communities.
"We are delighted to take the next step in our potential joint venture with LifePoint," said Steve Zutter, chairman of the Portage Health board. "As we have explored this partnership, our board has become even more excited about the benefits that becoming part of LifePoint will bring our communities. This joint venture offers Portage Health opportunities not only to expand and enhance the care we provide, but transform healthcare provided throughout the region."
Under the terms of the definitive agreement, Portage Health and LifePoint would jointly own and operate Portage Health and its affiliated assets. LifePoint would own 80% of the joint venture, while Portage Health would have a 20% ownership stake. In addition to the $60 million in capital investments by the joint venture, approximately $40 million would be used to create a locally governed charitable foundation to fund organizations that support crucial community needs.
As part of the agreement, governance of Portage Health would be equally shared between Portage Health and LifePoint to ensure that the community has an active and ongoing voice in the strategic direction of the hospital. An eight-member governing board with equal representation from Portage Health and LifePoint would be established.
Portage Health's mission is to improve the health of the community by providing high quality, safe and compassionate healthcare.
LifePoint Hospitals is a hospital company focused on providing quality healthcare services.