On Friday, Jan. 4, Allegan Healthcare Group Inc. and Ascension Michigan announced the signing of a non-binding letter of intent for Allegan Healthcare to join Ascension Michigan.
A non binding contract is an agreement in which the parties are not legally obligated to carry out its terms. Their purpose is to state the parties’ intention as part of the negotiation process. If both parties agree to the terms of the non-binding contract, they can sign a binding contract afterward.
Allegan Healthcare is an independent nonprofit that includes the 25-bed Allegan General Hospital, Allegan Professional Health Services Inc. and the Allegan General Hospital Foundation. The system has 17 employed primary care providers and ambulatory services in Allegan and Van Buren counties.
“We are very proud to become part of the Ascension system,” said Gerald J. Barbini, president and CEO of Allegan General Hospital. “Our missions are very compatible and together we will continue to provide outstanding healthcare to our community.”
Ascension Michigan is part of a nationwide nonprofit healthcare system that includes Ascension Borgess in Kalamazoo.
“We anticipate a great level of cooperation and synergy between Ascension Borgess and Allegan,” said Joseph Cacchione, senior vice president of Ascension Healthcare. “The potential addition of Allegan General Hospital to Ascension Michigan represents a considerable opportunity for us, working closely with Allegan caregivers, to strengthen healthcare access and delivery.”
The transaction is subject to customary regulatory approvals and closing conditions.
Date: January 7, 2019