Duke LifePoint finalizes deal to acquire Marquette General
The Marquette General Health System (MGHS) board of trustees and Duke LifePoint Healthcare announced Tuesday that they have finalized the transaction for Marquette General to be acquired by Duke LifePoint.
A definitive agreement between the two organizations was signed in July, but needed to be reviewed and approved by Michigan Attorney General Bill Schuette before it was finalized. MGHS is Duke LifePoint’s first hospital in Michigan.
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Under the agreement, which became effective on Sept. 1, Duke LifePoint will eliminate the hospital’s debt and will invest $350 million in physician recruitment and capital improvement projects such as a state-of-the-art outpatient surgery center, a comprehensive cancer center, private patient rooms and new technology and IT infrastructure over the next 10 years.
Duke LifePoint also has provided funding for Marquette General’s charitable foundation, which will be used to improve healthcare in the greater Marquette community and underserved areas of the Upper Peninsula.
“Our top priority in selecting a strategic partner for Marquette General was to find an organization that shared our long-term commitment to advancing healthcare throughout the U.P.,” said Brad Cory, chair of the Marquette General Health System board of trustees, in a press release. “Duke LifePoint is the ideal partner for us. It provides advances in quality, and resources and support that will help us enhance healthcare delivery in our communities and strengthen Marquette General for the future.”
[Also: Marquette General signs agreement to join Duke LifePoint]
Duke LifePoint will also offer employment to all current MGHS 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 were not disclosed.
“This acquisition has the potential to be a major milestone in Marquette General’s history,” said Gary Muller, president and CEO of MGHS, in an interview with Healthcare Finance News in July. “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.”
Duke LifePoint will continue relationships the hospital has established with surrounding organizations, including the Northern Michigan University, Superior Health Partners and Michigan State University.
“Marquette General has been a vital part of the healthcare infrastructure across the Upper Peninsula for more than 50 years,” said LifePoint chairman and CEO William F. Carpenter III, in a written statement. “We are proud to welcome Marquette General to Duke LifePoint, and we are excited about the opportunity to work together to enhance healthcare in the U.P. and make this region healthier for generations to come.”
Marquette General is the fourth hospital to join Duke LifePoint, alongside Maria Parham Medical Center in Henderson, N.C.; Person Memorial Hospital in Roxboro, N.C.; and Twin County Regional Healthcare in Galax, Va. Duke LifePoint also operates DLP Cardiac Partners.
