Metro Health to sell 80 percent stake to Tennessee health company
WYOMING, Mich. — A Tennessee-based health company has agreed to purchase an 80 percent stake in Metro Health Hospital.
A majority of the hospital, its outpatient clinics and assets will be included in the sale.
The board of directors for Metro Health approved the agreement with Community Health Systems, CHS, of Nashville which will allow Metro Health to retain 20 percent ownership. The agreement was reached after more than a year of negotiations and will now be filed for review by the Michigan Office of the Attorney General.
A public hearing will also be scheduled before a final approval is granted.
The new partnership, if approved, will make Metro Health the first investor-owned hospital in West Michigan.
If the sale is approved, Metro Health will have access to the resources of CHS including:
- Up to $125 million in capital investments for facilities, services and medical technology.
- The hiring of all active employees in good standing at the time of the transaction.
- Metro Health will become a tax-paying entity, contributing financially to local communities and the state.
Also up for review following the close of the transaction will be the restructuring of the Metro Health Hospital Foundation.
“Our agreement helps ensure West Michigan community members will continue to have choice in their healthcare options,” Doyle Hayes, chairman of the board of Metro Health Corporation, said in a press release.
“CHS has an outstanding reputation for high quality and patient satisfaction, and we’re excited to move forward with an organization that will help position Metro Health for long-term success.”