Trinity to sell its stake in Battle Creek Health System in Michigan

February 15, 2011

Bronson Healthcare Group of Kalamazoo, Mich., plans to purchase a 51 percent stake in Battle Creek Health System in Michigan through a deal that is expected to be completed by midyear. Bronson is a 599-bed health care system with two main hospitals and a network of other health care facilities; and Battle Creek is a 204-bed system with a flagship hospital and a network of other facilities.

Bronson will purchase the 50 percent share now held by Trinity Health of Novi, Mich., for an undisclosed sum, and 1 percent of the stake held by BCHS Community Partners, a nonprofit organization run by a board of community members. BCHS will have a 49 percent stake after the deal closes.

Bronson and Battle Creek, both nonprofit health systems, have signed a letter of intent to create a nonprofit regional health care system to be operated by Bronson. Once the deal is concluded, Battle Creek no longer will be affiliated with Trinity, nor will it retain its Catholic identity. BCHS Community Partners will get one or more seats on the Bronson board.

Trinity and Battle Creek's governance decided to pursue the deal because they believe that Battle Creek will benefit from affiliating with a regional hospital partner. Trinity's network spans nine states; Bronson is focused on southwest Michigan.

Bronson and Battle Creek expect the new and larger health system to better coordinate patient care, improve hospital capacity and efficiency, reduce duplication of services among the Bronson and Battle Creek facilities, standardize care and improve the facilities' ability to recruit and retain clinicians. The leaders also hope that the partnership will enable Bronson and Battle Creek to have a greater impact when it comes to improving community health.

The organizations are conducting due diligence reviews and seeking legal and regulatory approvals.


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