The Bell Hospital Board of Directors today announced it has signed a definitive agreement to be acquired by LifePoint Hospitals®. The agreement is subject to review by the Attorney General of Michigan.
“We are pleased to have reached this agreement and look forward to taking the next step in the acquisition process,” said Robert DellAngelo, M.D., Chairman of the Bell Hospital board. “The due diligence we have conducted since March has confirmed the tremendous benefit this acquisition can offer Bell Hospital’s employees, physicians, patients and community. As part of LifePoint, we will have the resources we need to grow and strengthen our hospital, and help advance healthcare throughout the Upper Peninsula.”
As a LifePoint hospital, Bell will have access to financial, clinical and operational resources and support to improve quality care, reduce operational costs, recruit and retain physicians, offer new opportunities for employees, and invest in state-of-the-art equipment and facility upgrades.
Under the terms of the definitive agreement, LifePoint has committed to providing $5 million in capital investment at Bell over the next decade. Additionally, proceeds from the acquisition transaction will be used to eliminate Bell’s debt. All remaining proceeds – approximately $1 million – will be used to fund a locally-governed charitable foundation to support crucial needs in the community.
“Bell is a great hospital that plays an important role in the health and well being of Ishpeming and the surrounding region,” said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. “We are excited at the prospect of welcoming Bell to LifePoint and working with the hospital’s board, physicians and employees to make this community healthier.”
As part of LifePoint, the hospital would become a taxpaying organization, providing an important source of new tax revenue to support the Ishpeming economy.
“Our team has been impressed by LifePoint and its ideas for the future of Bell Hospital and healthcare in the Upper Peninsula,” said Floyd Bounds, Bell Hospital CEO. “This acquisition offers great opportunities for our hospital to grow and provide more and better services to our patients. We look forward to the next phase of this process.”