MGH – Duke LifePoint agreement signed
MARQUETTE, Mich.–The move toward the Duke LifePoint acquisition continued today as the Marquette General Health System Board of Trustees announced that it has signed a definitive agreement for the deal. This means the second of the three step process is complete for Marquette General to be acquired by Duke LifePoint Healthcare. A Letter of Intent was signed in February. The agreement is subject to review by the Attorney General of Michigan.
“We are very pleased to have reached this agreement and take the next steps in becoming part of Duke LifePoint,” said Brad Cory, Chair of the Marquette General Health System Board of Trustees. “After completing due diligence and closely examining the potential benefits of a Duke LifePoint acquisition for our hospital and community, our team is more enthusiastic about this partnership than ever. Duke LifePoint will provide Marquette General the resources we need to strengthen our hospital, enhance the services we offer and advance healthcare across the Upper Peninsula.”
ABC 10 is scheduled to meet with hospital officials this morning and will have additional information on the developing story at 5:30 pm on ABC 10 News Now with Cynthia Thompson.
MGHS released the following information as part of a media statement:
Funds from the acquisition transaction will be used to eliminate Marquette General’s debt and fund its pension program. All remaining proceeds will be used to fund a community foundation that will support healthcare organizations and initiatives in the U.P.
Under the terms of the agreement, Duke LifePoint has committed to investing in physician recruitment and capital improvement projects, including a state-of-the-art outpatient surgery center, comprehensive cancer center, private patient rooms, new technology and new IT infrastructure. Duke LifePoint will offer employment to all current Marquette General employees, subject to standard pre-employment screenings, and assume the hospital’s obligations under its contract with the Michigan Nurses Association. Other specific terms of the agreement are not disclosed.
“This acquisition has the potential to be a major milestone in Marquette General’s history,” said Gary Muller, President and CEO of Marquette General. “Duke LifePoint shares our dedication to community involvement, charity care, strong physician relationships and an exceptional work environment. Its leaders are committed to working with us to find ways that we can respond to the evolving healthcare needs in our region.”
Following the acquisition, the Marquette community will receive economic benefits from the construction of new facilities, spending at local businesses and municipal tax payments. Duke LifePoint also will continue relationships the hospital has established with organizations including the Northern Michigan University, Superior Health Partners and Michigan State University.
“Welcoming Marquette General to Duke LifePoint is a momentous occasion for us,” said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. “This new relationship strengthens our efforts to provide quality healthcare close to home, and our team looks forward to partnering with the exceptional employees and physicians at Marquette General to transform healthcare in its communities.”
Pending review of the transaction by the Attorney General, Marquette General will be Duke LifePoint’s first hospital in Michigan.
“Marquette General and Duke LifePoint share many important values, including a focus on serving our communities and providing top quality care to our patients,” said William J. Fulkerson Jr., M.D., Executive Vice President of Duke University Health System. “This acquisition is an excellent match for both of our organizations, and we have a great opportunity to work together to enhance healthcare delivery throughout the Upper Peninsula.”
Further information on the proposed relationship with Duke LifePoint will be available on the Marquette General website at www.mgh.org.