fbpx
Published in Health Care
Spectrum Health to buy out Holland Hospital’s interest in Grand Haven medical campus COURTESY PHOTO

Spectrum Health to buy out Holland Hospital’s interest in Grand Haven medical campus

BY Thursday, December 17, 2020 05:08pm

GRAND HAVEN — Spectrum Health plans to buy out Holland Hospital’s interest in Health Pointe, an outpatient medical campus developed in Grand Haven through a joint venture, MiBiz has learned.

Spectrum Health confirmed the move Thursday, saying in a statement that the two “mutually agreed that Health Pointe will be most successful going forward outside of a joint venture structure.”

“The collaboration of Spectrum Health and Holland Hospital in launching Health Pointe was an important step in bringing greater access to care in Ottawa County. We’ve learned a great deal in the past five years,” the Grand Rapids-based health system said. “Spectrum Health will purchase Holland Hospital’s 50 percent share and become the sole owner of Health Pointe effective Dec. 31, 2020. We look forward to continuing to partner, as we have for many years, on this and other collaborative efforts in the future.”

The Spectrum Health statement did not indicate the value of buying out Holland Hospital’s interest. The nonprofit, tax-exempt corporate LLC will remain intact and “continue to serve the Grand Haven community just now as a wholly owned subsidiary of Spectrum Health,” Spectrum said.

Holland Hospital declined to comment beyond saying that Holland physicians now practicing at Health Pointe would remain.

Formed in June 2015, Health Pointe opened the $50 million outpatient medical center in March 2018 after a tumultuous process in 2016 to secure local zoning approval that was opposed by North Ottawa Community Health System. The campus houses primary care and specialists, medical imaging and an outpatient surgery center.

Spectrum Health told MiBiz there are “no immediate plans for changes” at the medical campus, “but Health Pointe and Spectrum Health will continue to find ways to improve how we serve the Grand Haven community.”

“We continue to be pleased with how (Health Pointe) has served the Grand Haven community,” Spectrum Health said.

The joint venture recorded losses in its first two years of operation, according to financial reports to the Internal Revenue Service that nonprofits are required to file.

Health Pointe recorded a net loss of $7.1 million on $4.1 million in revenue and $11.3 million in expenses in its first fiscal year that ended June 30, 2018. Losses grew to $10.6 million on $16.2 million in total revenue and $26.8 million in expenses in the 2019 fiscal year, the most recent year filings are available.

Spectrum Health said it was “encouraged by Health Pointe’s performance for 2020, especially in light of the pandemic.”

Read 6847 times
SUBSCRIBE TO MIBIZ TODAY FOR WEST MICHIGAN’S FINEST BUSINESS NEWS REPORTING >