Nearly four years after teaming up, Spectrum Health and Hackley Health have decided to dissolve their affiliation.
The two health systems announced their separation Thursday, saying the decision was amicable and based on the findings of an internal task force at Spectrum Health that reviewed the governance structure of the affiliation, which stopped just short of an outright asset merger between Hackley and Spectrum.
Rather than become a wholly-owned subsidiary of Spectrum Health, as other health systems and hospitals have done, Hackley Health directors opted for now to remain independent and end the formal affiliation “but work very closely” with Spectrum Health, spokesman Stuart Jones said.
“Despite the formal separation, our relationship is solid and we will continue to seek partnership opportunities with Spectrum Health,” Hackley Health CEO Gordon Mudler said.
The formal affiliation ends Dec. 31.
Under the affiliation, Hackley Health maintained a local board of directors and level of autonomy, although Spectrum Health had approval over Hackley’s annual operating budget and appointment of directors. Spectrum Health also held two seats on the Hackley Health’s board of directors.
Hackley Health will remain a member of the Spectrum Health Regional Hospital Network, a group purchasing coalition consisting of 13 independent community hospitals and seven Spectrum Health-owned entities that in the last year and a half has saved participants a collective $2.3 million.
“We will continue to work with Hackley Health on several fronts as we do with other West Michigan community hospitals,” Spectrum Health CEO and President Richard Breon said. “We have had a strong and constructive relationship over the past four years and look forward to future collaborations with Hackley Health.”
Hackley Health includes two hospitals, Hackley Hospital in Muskegon and Hackley Lakeshore Hospital in Shelby, a primary care network of 40 physicians, home care and hospice arms, outpatient behavioral health services and a number of related health-care businesses. The health system employs about 2,200 people.