Memorial Medical Center of West Michigan (MMC), a nonprofit community hospital in Ludington, MI, has merged with Spectrum Health System (Spectrum), based in Grand Rapids, MI. The transaction closed on October 1, 2013. After proactively considering over two-dozen potential suitors and multiple transaction structures, MMC chose to enter into a business combination with Spectrum. As part of the agreement, Spectrum Health will invest more than $50 million into MMC and the Ludington community for capital projects and the creation of a charitable foundation.
The Board of Directors of MMC engaged Juniper Advisory to proactively assess their strategic options, as well as to implement a competitive process to evaluate transaction alternatives. Juniper designed and managed a marketing process that included identifying potential suitors, drafting information materials, populating an electronic data room, conducting reverse due diligence, and negotiating and executing the terms of the change-of-control transaction.
Memorial Medical Center of West Michigan
MMC is an independent regional medical center serving four counties of West Michigan and thousands of tourists who visit the area during the summer. MMC is the only hospital in Mason County and is the county’s largest employer. It has a history of strong market share in its primary and secondary service areas in both inpatient and outpatient services. In creating this partnership, the Board seeks to ensure an enhanced ability to provide high-quality regional healthcare and to advance its mission by increasing the breadth of available clinical services, medical capabilities, and financial wherewithal in West Michigan.
Spectrum Health System
Spectrum is the leading nonprofit health system in West Michigan and consists of ten hospitals, 130 ambulatory and service sites, physician groups totaling 751 providers, and a health plan with 600,000 members. Employing over 19,000 people, Spectrum is West Michigan’s largest employer and is ranked a Top 10 Integrated System in the U.S. by Thomson Reuters and a Top 50 Hospital by US News & World Report. During Fiscal Year 2012, Spectrum provided $204 million in community benefit. This transaction will further Spectrum’s commitment to an integrated healthcare system throughout West Michigan.
For additional details on this transaction, please refer to MMC’s press release.
We are currently advising a number of nonprofit hospital boards on unique transactions around the country and look forward to sharing updates on these projects in the coming months. For additional information, please contact us at 312.506.3000 or via email.