Please check back to this website for updates throughout the proposed partnership's process. We will provide updates as they are available with information from Portage Health and LifePoint Hospitals. Please follow us on Twitter (@PortageHealth) and Facebook (Facebook.com/PortageHealth).
Below are frequently asked questions Portage Health employees and community members have asked. We will update this as time goes on. If you have something you’d like to ask, please e-mail email@example.com, and we’ll do our best to answer you. If it’s a question we’ve seen before, we might even add it to this page.
No. Portage Health and LifePoint Hospitals will enter a joint venture agreement. LifePoint will obtain a majority interest and Portage Health will retain a minority interest in the hospital ownership. Portage Health and LifePoint will share governance of the hospital equally.
Each of LifePoint’s relationships with its partners is tailored to meet the needs and desires of the local community. Portage Health’s proposed partnership is with LifePoint Hospitals, not Duke LifePoint Healthcare. The partnership is a joint venture, based on our community’s needs and desires to retain ownership and governance. Marquette was acquired by Duke LifePoint Healthcare - LifePoint’s joint venture with Duke University Health System - because, as a tertiary hospital, MGH can greatly benefit from Duke’s clinical programs, which are geared for tertiary care providers.
A governing board will be appointed by Portage Health and LifePoint. This Board will be responsible for oversight of the operation of the joint venture. Portage Health and LifePoint will share governance equally, despite LifePoint’s majority ownership interest in the joint venture. This is a great aspect of our relationship that will grant the community a significant voice in the future operations of Portage Health.
You can rest assured that this change will be beneficial to the community. Partnering with a for-profit organization will not change our dedication to the delivery of quality healthcare to our community. In fact, commitment to quality service is one of the reasons LifePoint Hospitals was attractive to Portage Health, as LifePoint shares this core value with us.
Portage Health will become a for-profit organization, and this change in designation will make us a tax-paying organization, creating a new source of tax revenue to support the local economy.
No. The announcement of our letter of intent indicates that we have reached a non-binding agreement on the key aspects of a relationship between Portage Health and LifePoint. The letter of intent allows the parties to proceed with a due-diligence process and negotiation of a definitive (binding) agreement. During this phase of negotiation, detailed questions will be answered and key points will be explored until we arrive at an agreement that is mutually approved by Portage Health and LifePoint. Once the definitive agreement is final, it will be subject to review by the Attorney General of the State of Michigan.
LifePoint understands the importance of growing services in the community. In order for Portage Health and LifePoint to be successful in the future, we must enhance existing services and add new services that will benefit the community. In addition, as part of the agreement, changes to services offered by the hospital will be subject to approval by the joint venture board.
No. The rural-health designation is defined by the population a hospital serves, not by its for-profit or not-for-profit status.
At this time, the details of the agreement have not been finalized. Once we reach definitive agreement, the terms of the agreement must be reviewed and verified by the Attorney General as part of their process. Therefore, it would be premature to disclose those details prior to Attorney General review.
The process the Board of Portage Health undertook to identify and select a strategic partner was very thorough and will result is significant funds being invested in the future of the hospital with additional funds being placed into a local, non-profit foundation for the benefit of the community.
All current Portage Health entities are included: Home Care & Hospice, Apothecaries, PortagePointe, Rehab, etc.
No. LifePoint will maintain and promote the name of the community hospital.
Yes. Actually, there will be two boards: a joint venture governing board (described above) and a Board of Trustees, which will function as an advisory board. The Board of Trustees will oversee credentialing and quality initiatives and advise and provide recommendations to the governing board.
We expect the due diligence process to take 60-90 days, after which a definitive agreement will be finalized.
All wages will remain at their current rate for those people employed at the time of the closing.
Although the Letter of Intent is subject to due diligence review over the next several months, the Joint Venture partners have expressed an intention to adopt the terms of the current collective bargaining agreements. The Joint Venture is committed to maintaining a mutually beneficial working relationship with Michigan Nurses Association and American Federation of State, County and Municipal Employees.
At the closing date, Portage Health will cease to be a legal entity. Employees will technically be employed by a LifePoint affiliated entity. However, we will still be known as Portage Health.
If you have questions, please contact Jim Bogan, President/CEO at 906.483.1501 or Kevin Store, Marketing and Communications Director at 906.483.1097.
You can also e-mail firstname.lastname@example.org with any questions.
On March 14, 2013 at 6:30 p.m., Portage Health hosted a community forum at the Hancock High School Auditorium. The forum was an opportunity for community members to ask questions and voice any feedback. This short slideshow was presented to help illustrate some of the key points of the proposed joint venture partnership.
Portage Health will be hosting a community forum on Thursday night at 6:30 at the Hancock High School auditorium.
The forum is a chance for community members to learn more about the potential Portage Health and LifePoint Hospitals joint venture that was announced on Feb. 28.
Portage Health CEO and President Jim Bogan will open the forum with a brief overview of the proposed partnership. Following Bogan’s comments there will be a question-and-answer session for community members to voice their comments and concerns.
Read about the proposed partnership on our website, portagehealth.org/lifepoint.
On March 6, 2013, Portage Health and LifePoint Hospitals hosted a social event for community leaders. This was an opportunity to talk about the proposed joint venture partnership, have honest discussions and speak to any questions and concerns.
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Potential partnership will help strengthen healthcare delivery in the Western Upper Peninsula
Hancock, Michigan (February 28, 2013) – The Portage Health Board of Directors today announced it has signed a letter of intent to form a joint venture with LifePoint Hospitals®. The proposed partnership will provide Portage Health with additional resources to expand the healthcare services provided in its communities and invest further in the growth of the hospital.
The letter of intent is a non-binding agreement that authorizes Portage Health and LifePoint to move forward with pursuing the proposed joint venture. Following due diligence and a negotiation process, which is projected to take 60 to 90 days, the parties would enter into a definitive agreement. The agreement would then be subject to review by of the Attorney General of Michigan before being finalized.
“We selected LifePoint as a partner because of its commitment to physicians, employees, and community,” said Steve Zutter, chairman of the Portage Health board. “As part of this joint venture, Portage Health would share ownership and governance of our system while benefiting from financial resources, clinical and quality programs, and management expertise of one of the leading hospital companies in the nation. Together with LifePoint, we have a great opportunity to enhance the outstanding, innovative care provided throughout the Western Upper Peninsula.”
Under the terms of the proposed partnership, Portage Health and LifePoint would share ownership and governance of the hospital. Portage Health and LifePoint would share ownership of the hospital, with LifePoint obtaining the majority ownership interest. Governance would be equally shared between Portage Health and LifePoint, giving the community a long-term voice in the strategic direction of the hospital. The retained assets of Portage Health and the proceeds from the transaction would be used to create a locally-governed charitable foundation that would fund organizations that support crucial community needs.
“Portage Health is known for its quality service, commitment to patients and dedication to its communities. We are delighted at the prospect of partnering with Portage,” said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. “We look forward to working with the Portage board, management, employees and medical staff to explore new ways to expand and enhance healthcare services in the Western U.P. and strengthen the healthcare delivery system throughout the region.”
LifePoint is a leading hospital company focused on providing quality healthcare close to home. The joint venture with Portage Health will expand LifePoint’s presence in Michigan’s Upper Peninsula. In September 2012, Duke LifePoint Healthcare, the innovative joint venture partnership between LifePoint and Duke University Health System, acquired Marquette General Health System in Marquette.
“LifePoint has shown a tremendous commitment to strengthening healthcare delivery in the U.P. and partnering with providers to enhance the services we provide and ensure patients have access to the care they need and deserve locally,” said Jim Bogan, Portage Health President and CEO. “We are eager to explore this joint venture further and more closely examine the benefits it can offer our hospital and the future of healthcare in our communities.”
About Portage Health
Portage Health’s mission is to improve the health of the community by providing high quality, safe and compassionate healthcare. Portage Health owns and operates a 36-bed acute-care hospital and a 60-bed skilled nursing unit and related health care services in Hancock-Houghton, Michigan, along with nine other locations throughout the Copper Country, each offering a variety of services provided by a full spectrum of healthcare professionals. More information about Portage Health can be found at www.portagehealth.org.
PDF of Press Release
Visit portagehealth.org/lifepoint for the latest updates.
Dear Community Leaders,
I am delighted to share the news that the Board of Directors of Portage Health has signed a letter of intent to form a joint venture with LifePoint Hospitals. More information about this proposed partnership is in the attached press release.
This is an exciting development for us and our community. As a joint venture partner with LifePoint, Portage Health will have access to additional resources to expand and enhance the services we provide, recruit and retain physicians, offer new opportunities for employees, better serve our communities, and strengthen our hospital for the future.
As part of our strategic initiatives, the Portage Health Board of Directors has been considering a potential partnership for the past two years. Following an extensive search process, LifePoint was selected as the ideal partner to help us to continue our growth as a regional health system. We believe LifePoint is aligned with us on several important issues including:
LifePoint is a leading hospital provider that specializes in operating community hospitals in non-urban areas, like ours. It has 57 hospitals in 20 states and already has a presence here in the Upper Peninsula. In September 2012, Duke LifePoint Healthcare, the innovative joint venture between LifePoint and Duke University Health System, acquired Marquette General Health System.
LifePoint’s goal in partnering with hospitals in our region is to enhance quality care, improve care coordination and reduce healthcare costs in the U.P. It is actively collaborating with Superior Health Partners and others to keep U.P. healthcare local so patients can continue receiving top-notch, state of the art care close to home.
Our community will benefit in many ways from a partnership between Portage Health and LifePoint. The joint venture would become a local taxpayer, providing an important source of new tax revenue to support our economy. Also, proceeds from the transaction would be used to create a locally-governed charitable foundation to support crucial community needs.
Over the next few months, we will undertake a due diligence process with LifePoint to ensure that this partnership is a good fit for Portage Health and our communities. We will then negotiate the terms of a definitive agreement.
Our board and management team join me in thanking you for your continued support of Portage Health and the exciting opportunities that lie ahead.
Jim Bogan Portage Health President and CEO
On January 4, 2013, Portage Health executives gave an update to community leaders at the Michigan Tech MUB. The presentation was recorded and you can view it here. Below you can watch the presentation or download it to your computer to watch later.
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The Portage Health Emergency Department has once again been verified by the American College of Surgeons (ACS) as a Level 3 Trauma Center. Portage Health is one of only two trauma centers in Michigan to receive the verification, and is the only one in the Upper Peninsula.
Portage Health’s commitment to excellence was recognized with an “A” in the latest Hospital Safety Score grading by The Leapfrog Group. “Receiving the highest grade possible from a credible and neutral source is tremendously rewarding for us,” said Jim Bogan, president/CEO of Portage Health. “Our staff is committed to providing the best possible experience for our patients, and ratings like this validate our efforts.” The “A” ranking was awarded to 37 Michigan hospitals, including two others in the Upper Peninsula.
Portage Health was named one of the “2011 Top Performers on Key Quality Measures” by The Joint Commission, the leading accreditor of health care organizations in America. This recognition places Portage Health in the top 18 percent of hospitals nationwide. The Hancock-based hospital is one of only three hospitals in Michigan’s Upper Peninsula to receive the honor and one of 13 statewide. Of those hospitals, Portage Health was one of nine in the state and the only in the U.P. to be recognized in multiple categories.
Portage Health’s commitment to service excellence was rewarded in the most recent data from the HCAHPS survey, with the highest ratings in the Upper Peninsula.The HCAHPS (Hospital Consumer Assessment of Healthcare Providers and Systems) Survey is the first national, standardized, publicly reported survey of patients’ perspectives of hospital care. The survey collects answers to 10 questions from patients, and compares hospitals nationwide. Portage Health averaged 79.2 percent with best possible answers, which is considerably higher than U.P (70.5 percent) state (71.1 percent) and national (70.7 percent) averages.
The Portage Health Dialysis Center is one of two dialysis centers in the U.P. to be recognized as a 5-Diamond Patient Safety Program by the Renal Network of the Upper Midwest, Inc.“This is a huge accomplishment that every person in our department can be proud of,” said Karen Kelley, director of the center. “It took hard work by every person on our staff to achieve this, and now we’ve got to work hard to keep it up.”
The OB/GYN clinic received great news earlier this summer as the staff was recognized by Press Ganey for a six-point increase in overall satisfaction scores.The department has been infused with new staff highlighted by Dr. Rebecca Baudoin and Dr. Charles Rollison during the past year.
500 Campus DriveHancock, MI 49930(906) 483-1000
921 W. Sharon AvenueHoughton, MI 49931(906) 483-1777
945 Ninth StreetLake Linden, MI 49945(906) 483-1030
751 S. Seventh StreetOntonagon, MI 49953(906) 884-4120
600 MacInnes DriveHoughton, MI 49931(906) 483-1860