Traverse City Record-Eagle

Region

September 9, 2010

Munson to reveal Spectrum details

By Bill O'Brien bobrien@record-eagle.com

TRAVERSE CITY — Northern Michigan should learn more about its healthcare future today when Munson hospital officials reveal details of their partnership talks with Spectrum Health.

Munson Healthcare representatives will disclose at least part of a planned relationship with Grand Rapids-based Spectrum in a meeting scheduled this morning with local media members.

Munson Healthcare CEO Ed Ness, Munson Healthcare Board Chairman Tom McIntyre and Dr. Robert Sprunk, chairman of the Munson Medical Center Board, will attend.

Munson officials have been tight-lipped on details of Spectrum negotiations, talks that began in late 2008. Munson acknowledged those discussions in January, and touted Spectrum's strong financial base as an incentive that could help Munson attain an estimated $340 million in capital projects and technology upgrades needed over the next decade.

Spectrum also could assist Munson in physician recruitment, local officials said.

Strong community reaction complicated talks, and touched on the potential for loss of local control. Some community members also questioned Munson's long-range capital projections.

Munson subsequently undertook a third-party review of those estimates, and commissioned a community-wide survey of its corporate members and other locals to gather reaction to the Spectrum talks.

Ness is expected to discuss the results of those two research initiatives at today's meeting. Ness and McIntyre did not respond to requests for comment Wednesday.

Speculation exists among some Munson-connected area residents that the deal falls short of a full-fledged merger. Early talks strongly hinted at the dissolution of Munson's large corporate ownership by transforming Munson healthcare into a division of Spectrum.

The parties instead may pursue joint ownership of major facilities like a new cancer treatment center.

Some also expect Munson to keep partnership options open with other healthcare providers, including the University of Michigan Health System. U-M confirmed it recently approached Munson about an "expanded relationship" and "strategic investment" with Munson and its facilities.

"Exclusivity is the key word here," said Michael LaPenna, a Grand Rapids-based consultant who's worked on health system partnerships around the country. "The real question is does this preclude other discussions with other health care systems?"

Members of Munson's 270-member plus corporate membership body said they're in the dark about Munson's announcement. Corporate member and Traverse City resident T. Michael Jackson said members received word late last week about Munson's intention to announce a Spectrum decision this week.

But Jackson said most corporate members have "no idea" as to details, and there's widespread speculation about what the relationship may entail.

"It's all over the map, obviously," Jackson said. "Basically, it's like it was nine months ago ... nobody knows what's going on."

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