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 you'll find:

• May 6, 2013 - Frequently Asked Questions
•  March 14, 2013 - Community Forum presentation 
• March 8, 2013 - Press Release inviting the community to forum 
• March 6, 2013 - Community Leaders Social Video 
• February 28, 2013 - Key Points about the Joint Venture 
• February 28, 2013 - Press Release announcing Letter of Intent signed 
• February 27, 2013 - Letter to Community Leaders 
• January 4, 2013 - Annual Update to the Community Video 

May 6, 2013 - Frequently Asked Questions

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 webmaster@portagehealth.org, 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.

Is Portage Health being bought out by LifePoint Hospitals?

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.

How is this affiliation different from the acquisition of MGH by Duke LifePoint Healthcare?

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.

How will governance of the organization work?

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.

How will joining a “for-profit” corporation change how we do business?

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.

Does the letter of intent mean everything is finalized?

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.

What happens to all the services we currently offer?

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.

Will we lose our rural-health designation converting to a for-profit healthcare system?

No. The rural-health designation is defined by the population a hospital serves, not by its for-profit or not-for-profit status.

How much money is LifePoint expected to invest for majority ownership of Portage Health?

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.

Which Portage Health entities are included in the joint venture?

All current Portage Health entities are included: Home Care & Hospice, Apothecaries, PortagePointe, Rehab, etc.

Will we have a name change or a branding change?

No. LifePoint will maintain and promote the name of the community hospital.

Will there still be a Portage Health board of directors?

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.

What’s the timeline for signing a definitive agreement?

We expect the due diligence process to take 60-90 days, after which a definitive agreement will be finalized.

Will Portage Health employee wages be cut?

All wages will remain at their current rate for those people employed at the time of the closing.

How will this partnership affect our bargaining units?

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.

Will Portage Health or LifePoint employ us?

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.

Who can I contact for more information?

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 webmaster@portagehealth.org with any questions.

March 14, 2013 - Community Forum PowerPoint

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.

March 6, 2013 - Portage Health & LifePoint host a social for community leaders 

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.

Download video: MP4 format | Ogg format | WebM format  

Stream the video on Vimeo  

Stream the video on YouTube  

February 28, 2013: Portage Health and LifePoint Hospitals Joint Venture Key Points

General Information

• LifePoint Hospitals aims to create an integrated, regional network and healthcare delivery system focused on delivering quality healthcare and improving the well-being of citizens throughout the Upper Peninsula. The proposed joint venture with LifePoint Hospitals can provide Portage Health with financial, operational and clinical resources that will allow us to continue offering top-quality care to our communities and invest further in the growth and enhancement of our hospital.
• As partners with LifePoint, Portage Health would share ownership and governance of our healthcare organization while benefiting from financial resources, clinical and quality programs, and management expertise of one of the leading companies in the hospital industry.
• LifePoint was chosen as a partner for Portage Health because it is aligned philosophically with us on several key issues:
  1. A dedication to quality care and service for our patients;
  2. A dedication to collaborative relationships with medical staff;
  3. A commitment to preserve jobs for our employees;
  4. An understanding of the importance of local involvement and governance; and
  5. An established and growing commitment to support the health and wellbeing of the entire Upper Peninsula.
   
• As a joint venture partner with LifePoint Hospitals, Portage Health would have access to the support and resources we need to navigate the changing healthcare environment; 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.
• The proposed partnership offers many benefits not only to our hospital, but to our communities. The new joint venture would become a local taxpayer, providing an important source of new tax revenue to support our local economy. It also would establish a locally-governed charitable foundation that will provide new funding for organizations that support crucial needs in our communities.
• In the potential joint venture with LifePoint, Portage Health would share ownership and governance of our hospital, with LifePoint obtaining a majority interest. Governance of Portage Health would be shared 50/50 between Portage Health and LifePoint, giving the community an equal and long-term voice in the strategic direction of Portage Health. 

The Portage Health Partnership Process

• The Portage Health Board of Directors has been considering a potential partnership or affiliation for the past two years.
• Following an extensive search process, we found LifePoint Hospitals to be the ideal partner to allow us to continue our growth as a community hospital.
• A joint venture with LifePoint will allow us to further strengthen our operations and have additional support and resources needed to succeed in the changing healthcare landscape.

LifePoint Hospitals

• LifePoint is a leading hospital provider that specializes in operating community hospitals in non-urban areas, like ours. LifePoint has 57 hospitals in 20 states – many just like Portage Health. Most of LifePoint’s facilities are the sole community hospital provider in the region they serve, and the company has a proven track record of fostering the success of these hospitals, its affiliated providers, their employees and communities.
• LifePoint has already committed to improving healthcare in the 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 a growing presence in our region. The company is actively collaborating with Superior Health Partners and others to keep U.P. healthcare local. It also is partnering with healthcare providers throughout the U.P. to enhance quality care, improve care coordination, reduce healthcare costs, and recruit new physicians so patients can continue receiving top-notch, state-of-the-art care close to home.

Letter of Intent and Due Diligence Process

• With Board approval, we have signed a letter of intent, which authorizes us to move forward with the necessary steps to pursue the proposed partnership with LifePoint.
• Over the next few months, we will undertake a due diligence process 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.
• As part of this process, you all will have the opportunity to meet representatives from LifePoint and learn about the organization and how it might work with Portage Health.
• We are committed to open communication and full dialogue with employees, physicians and members of the community during all stages of this process. We understand that you have questions, and we will do our best to answer them as we know more in coming weeks.
• Completion of our agreement with LifePoint will require review by the Attorney General of Michigan.

Impact on the Community

• The community will benefit in many ways from the partnership between Portage Health and LifePoint.
• Portage Health will have access to additional resources to invest in new technology and enhance our services to better serve the healthcare needs of our communities.
• LifePoint understands that the community has a vested interest in Portage Health. Because Portage Health will share ownership and governance of the hospital with LifePoint, we can ensure that the community will have an equal and continuing voice in the operation of our hospital.
• The new joint venture would become a local taxpayer, providing an important source of new tax revenue to support our local economy.
• The initial proceeds from the transaction would be used to create a locally-governed charitable foundation that would support crucial community needs. This foundation would be led by a local board comprised of community representatives.
   

February 27, 2013 - Letter to Community Leaders

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:

1. A dedication to quality care and service for our patients;
2. A dedication to collaborative relationships with medical staff;
3. A commitment to our employees;
4. An understanding of the importance of local involvement and governance; and
5. A commitment to support the health and wellbeing of the entire Upper Peninsula.

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.

Sincerely,

Jim Bogan
Portage Health President and CEO

January 4, 2013 - Annual Update 2013

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.

Download video: MP4 format | Ogg format | WebM format  | QuickTime format | Windows Media format 

Stream the video on Vimeo  

Stream the video on YouTube