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Northern Michigan Regional Health System Terminates Agreement with Spectrum Health

Petoskey Mich. – July 27, 2010 – Northern Michigan Regional Health System Board of Trustees has informed Grand Rapids-based Spectrum Health of its unanimous decision to terminate the agreement to pursue affiliation, effective July 26, 2010.

The two parties entered into an agreement to explore potential affiliation in March 2009. While due diligence was proceeding satisfactorily, the negotiations surrounding the terms of the affiliation agreement ultimately led to the identification of significant differences.

“The decision to terminate was reached by our Board of Trustees after thorough discussion. Differences between the two organizations existed in the vision for the delivery of local healthcare services, leadership structure, and board of trustee models,” said Reezie DeVet, President & CEO of Northern Michigan Regional Health System. “Although we are terminating our agreement, we will continue our long-standing history of collaboration with Spectrum Health on projects that increase access to healthcare services for patients in our region.”

Among these are the provision of specialty pediatric care through the Helen DeVos Children’s Hospital Network; participation in Value Health Partners (VHP), an eight-member health system collaborative; and participation in Priority Health, a health plan owned by Spectrum Health.

“Spectrum Health is a highly-respected, quality health system,” said Dave Buzzelli, Chair, Northern Michigan Regional Health System Board of Trustees. “We are disappointed that an agreement could not be reached but we are looking forward to working with Spectrum on other future initiatives. We continue to be dedicated to providing excellent healthcare in northern Michigan and will seek opportunities to accomplish that goal.”

Given the rapidly changing economic environment, national healthcare reform, and other complex challenges, many healthcare organizations are addressing the manner in which they will deliver healthcare in the future.

“Northern Michigan Regional Health System is committed to developing an integrated healthcare network in northern Michigan that will ensure access to primary and advanced specialty care for patients in even the most remote and rural settings. We will continue to provide leadership in this effort across northern Michigan through partnerships and resource-sharing initiatives with other care providers”, added DeVet.

Northern Michigan Regional Health System is a non-profit organization that is committed to providing patient-centered specialized care to residents in 22 counties throughout northern Michigan and the eastern part of the Upper Peninsula. The flagship of Northern Michigan Regional Health System is Northern Michigan Regional Hospital, a 214-bed, regional referral center located in Petoskey with a medical staff of nearly 200 physicians representing nearly all medical and surgical specialties, enabling full-service care with an emphasis on advanced heart, cancer, orthopaedics, and neuroscience services. Other Health System affiliates include Northern Michigan Regional Hospital Foundation, Hospice of Little Traverse Bay, Boulder Park Terrace, VitalCare, Michigan Heart & Vascular Specialists, Rogers City Medical Group, Prescription Services, and the Community Free Clinic. Regional partners include Mackinac Straits Hospital, Mackinac Island Health Center, and Beaver Island Health Center.

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