http://ipraudio.interlochen.org/NMRHMcLaren.mp3
The hospital in Petoskey is now a subsidiary of a downstate health system. Northern Michigan Regional Hospital announced today it has joined Flint-based McLaren Health Care.
The news comes after months of private talks, and after years of searching for a larger player. McLaren will bring a double "A" credit rating, and access to capital that DeVet says should help with building a new hospital building in Petoskey, or major and necessary renovations to the current one.
NMRH CEO Reezie DeVet says the board will retain a lot of control, but some decisions will go to Flint.
"Above a certain spending limit, we will need to get McLaren's corporate board approval," she says. "And also, our board members will be nominated by our local board, but approved by the corporate board."
Donations made to the hospital foundation will remain local.
Some jobs will go to Flint, DeVet says the institutional technology department will be outsourced from Petoskey, though she says she doesn't know yet how many jobs will be lost, or when.
DeVet says fewer hospitals will be able to operate on their own in the future.
"There will be some hospitals in the nation that will be able to remain independent but many of them will want to become part of larger organizations, for much the same reasons," she says. "It also positions organizations much more strongly to meet to the challenges that healthcare reform will have for us over the next five-to-ten years," she says.
Back in 2010, both NMRH and Munson Healthcare in Traverse City failed in talks with Spectrum Health of Grand Rapids. Leaders in Petoskey moved on to talk with McLaren.