IRON MOUNTAIN — Bellin Health and Dickinson County Healthcare System (DCHS) announced the termination of an Asset Purchase Agreement Monday in a press release.
While the Asset Purchase Agreement is being terminated, the entities will continue their collaborative approach to providing healthcare in Iron Mountain and Dickinson County. DCHS remains a member of Bellin Health Partners.
When the entities signed the original Letter of Intent in December 2017, the agreed upon purchase price was expected to be between $40 million to $50 million. It was anticipated that the due diligence process would take six months or less.
Although DCHS has taken steps to reduce expenses and implement cost saving measures, significant unpredicted losses emerged, driving up the asset purchase price.
As the situation unfolded, and in an attempt to seek additional help, Bellin and DCHS sought a number of remedies, including meeting with State of Michigan representatives to request financial and other assistance. The State recently informed each entity that, while they could assist with regulatory and licensing issues, they would not provide financial assistance to DCHS.
While Bellin is a financially healthy organization, an increasing financial commitment, combined with DCHS’s continuing financial issues, are cause for concern. The organizations have agreed to continue discussions this week to find other alternatives to continue to build on the strong relationships and services that Bellin and DCHS have provided to the Iron Mountain community for many years.