McLaren Port Huron – a leader in healing, your partner in health.

General Audience Questions and Answers - Definitive Agreement - McLaren Port Huron and McLaren Health Care - May 1, 2014

A hospital for all times. Honoring the past. Securing the future.Fact Sheet 

News Release

General Audience Questions and Answers

Patient and Community Questions and Answers

Foundation and Donor Questions and Answers

If you still have questions, please submit an 'Ask Us' form

1. Is McLaren Port Huron officially part of McLaren Health Care?

a. Yes, the definitive agreement was effective May 1, 2014.

2. Will the hospital’s name change?

a. Yes. We will become McLaren Port Huron. These changes will begin soon and will take many months to complete.

3. Why are you doing this? What is driving this decision?

a. With population changes, increased regional competition, lower reimbursement, and many changes associated with healthcare reform, we are facing unprecedented challenges.
b. After a thorough review, the Blue Water Health Services board determined that this was the right time to consider a relationship with another hospital system.
c. The board determined that McLaren is the best choice to help us continue to serve the local community and to help meet our long-term needs.
d. The McLaren Port Huron Board unanimously supported the decision.

4. What will this mean for the community?

a. McLaren will help us care for our community in the way that best fits our needs, which will mean growing our services and making significant investments in
our facility.
b. It means the quality and compassionate care you expect from Port Huron Hospital will continue well into the future.
c. It means additional investment in modernizing our facilities, equipment and technology. For example, we’re building a new cancer center and planning to build a new patient tower with more private rooms.
d. Our values – compassion, integrity and excellence - will continue to define our organizational culture.
e. It provides continued support for those with no insurance or who have challenges paying for care.

5. Why is this a good thing?

a. In addition to access to capital and strengthening our service lines, McLaren brings operational efficiencies that will help us better manage the reductions in Medicare payments.
b. McLaren will help us comply with the Patient Protection and Affordable Care Act, which requires us to work in different ways with our physicians and to monitor and track our patients’ care, using new systems and technologies.
c. This new relationship allows the local community to continue to receive high-quality, compassionate care from a trusted partner in their neighborhood.
d. The hospital system trusted by the local community will continue to have local governance, guidance and direction to assure that we focus on the needs of our community.
e. McLaren Port Huron will continue to retain authority over Marwood Nursing and Rehab, the McLaren Port Huron Foundation and other subsidiaries.

6. Will the hospital close?

a. No. McLaren will help us expand services and improve facilities so that Port Huron area residents can receive even more high quality health services right in the neighborhood.

7. Is McLaren Port Huron in a bad financial position?

a. McLaren Port Huron has a strong operating margin and continues to have a solid bottom line and very little debt. McLaren Port Huron continues to perform well financially. We have experienced solid financial performance for the last five years and are on track to exceed budgeted net income this year.

8. Why McLaren?

a. The McLaren team shares our enthusiasm for growing our services and expanding our market.
b. McLaren offers outstanding benefits, such as:
 A long-standing philosophy that health care is a locally-driven process that should be guided by local leadership and community stakeholders.
 System-wide efficiencies through purchasing, employee benefits and health insurance participation, etc.
 Qualifications to strengthen and expand clinical services in our market, including a substantial commitment to a new acute care tower and a comprehensive cancer center.
 Demonstrated experience with hospital-physician alignment strategies that position both for success under healthcare reform.
 A large Physician Hospital Organization that has been successful in achieving quality distinctions in pay-for-performance.
 Access to one of only four provider-owned health insurance plans in the state, already caring for over 250,000 lives.
c. McLaren will provide the structure, capital and resources that help us continue to provide high quality healthcare to the community.
d. We will draw from the resources and expertise of a 12-hospital system that already serves 6.5 million residents, at over 300 facilities and spans 54 counties in Michigan.
e. McLaren will enable us to maintain our commitment to community benefit, including free and low-cost screenings and health programs.
f. Together, leadership from both hospitals will commit to the growth of our services, facility and equipment improvements, employee and physician relationships and chart a course for success under new healthcare reform requirements.

9. What will happen to local control?

a. The hospital board of trustees will continue to govern the hospital as the McLaren Port Huron board. David Thompson, Blue Water board chairman, will also join the McLaren Health Care board of trustees.
b. The hospital will retain its current leadership and all subsidiaries will become entities of the hospital and report directly to local hospital leadership.

10. How will this impact the local economy?

a. McLaren will provide the support and resources we need, while still allowing for local priorities and direction. This gives us a competitive advantage that helps ensure success for the hospital and for the community we serve.
b. McLaren is investing in many new growth opportunities – both from an inpatient and outpatient perspective – because access to the most advanced care in our community remains a top priority of the Port Huron Hospital Board of Directors. For patients, the new relationship means expanded services, facility modernization and the purchase of new technology.
c. We will preserve our community benefit, including free screenings and health programs.
d. Local hiring remains under the control of local management. Potential growth means the potential for new jobs as well.

11. How will McLaren benefit?

a. McLaren’s business model has been to partner with community hospitals in unique geographic markets to support local clinical and financial success and grow local services and market share.
b. McLaren Port Huron and McLaren share the same philosophy for the continuation, growth and expansion of services. This specific partnership gives McLaren a competitive advantage by expanding its geographic reach into Michigan’s lower east coast and thumb region.

12. Who specifically made the decision on this agreement?

a. Blue Water Health Services made the final decision. It is the parent board for a network of healthcare services that includes Port Huron Hospital; Marwood Nursing and Rehab; McLaren Port Huron Medical Equipment; McLaren Port Huron Pharmacy Place; McLaren Port Huron Industrial Health Services; Parkview Property Management Corporation; and McLaren Port Huron Foundation.
b. After input from and consultation with the hospital board, medical staff and physician leadership, the Blue Water Health Services Board was responsible for making the final decision.
c. There are eight directors comprising the Blue Water Health Services board, including five officers of McLaren Port Huron, the chair of Marwood and two ad hoc members who are past chairmen and officers.

13. Will I notice a difference? How will this transition affect access? Delays? Bed availability? Wait times for procedures?

a. There will be no interruption in services through the transition process. The same level of compassionate care that has been provided over the last 131 years will continue.
b. Soon, patients and families will have access to expanded capabilities and services, such as the cancer center.

14. Will this new relationship bring in additional dollars for new equipment? Upgrades? More beds?

a. McLaren will provide the support and resources we need, while still allowing for local priorities and direction. This gives us a competitive advantage that helps ensure success for the hospital and for the community we serve.
b. In addition to making a substantial commitment to a new inpatient tower, McLaren will provide capital dollars for facility upgrades and the purchase of new equipment.
c. McLaren will also bring organizational expertise that will enable PHH and its physicians to succeed under new healthcare reform requirements.