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Michigan health organizations complete merger

Michigan's Spectrum Health recently announced plans to merge with Memorial Medical Center, an 87-bed hospital based in Eddington. Spectrum has consolidated with a number of health organizations across Michigan, but the deal with Memorial Medical Center will represent one of its largest mergers. Officials from both organizations signed an agreement finalizing the merger, with Spectrum pledging to invest around $48 million in Memorial over a 10-year period. The merger also stipulates that Spectrum will fund $6 million worth of new health care initiatives at Memorial and in its surrounding community.

Prior to the deal, Spectrum most recently acquired Mecosta Community Medical Center in July. The organization also hopes to merge with Metro Health, based in Grand Rapids, though the organization's leaders have officially announced such an agreement. Spectrum has acquired facilities in Lakeview, Zeeland, Fremont, Greenville and Big Rapids. Leaders at Memorial signed a letter of intent signaling their interest in a purchase agreement in May of 2013.

Experts say the deal is one example of a larger trend of mergers among healthcare organizations, as consolidation often allows smaller facilities to maintain a high level of care. Memorial Medical Center's CEO issued a statement asserting that the merger will improve patient access to medical care, help attract high-quality physicians and offer a larger variety of crucial services to Michigan residents.

Mergers and acquisitions are increasingly important for the financial viability of businesses and organizations across Michigan. However, formulating and finalizing such agreements can be legally complex, necessitating consultation with an experienced attorney.

Memorial Medical Center and Spectrum have worked together closely for years; Memorial is officially affiliated with a Spectrum-owned children's hospital and receives medical equipment and supplied from the Spectrum Health Regional Network. Spectrum Health's president explained that the merger will build on the two organizations' "excellent working relationship."

Source: MiBiz, "Spectrum Health finalizes merger agreement with Ludington hospital" Mark Sanchez, Sep. 06, 2013

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