Pennock Healthcare System to Join Spectrum Health on May 1

April 15, 2015

The Spectrum Health System Board of Directors and the Pennock Healthcare System Board of Trustees have each approved resolutions that would integrate Pennock Health Services (PHS) into Spectrum Health. PHS will become a Spectrum Health hospital, effective May 1, 2015, pending execution of all final legal documents. The new entity will be known as Spectrum Health Pennock.

“Spectrum Health has enjoyed a strong relationship with Pennock for many years. We share a commitment to patient-centered care,” said Richard C. Breon, President & CEO, Spectrum Health. “This agreement signifies an investment to provide quality health services to the Hastings community and Barry County.”

As part of the integration, the local Board of Trustees will remain along with the addition of two Spectrum Health representatives. Spectrum Health also has agreed to make a $46 million capital commitment over ten years and continue current essential services for at least ten years.

“The definitive agreement outlines the new relationship and the name of our organization,” said Maggie Coleman, board chair of the Pennock Hospital Board of Trustees. “We are pleased that Spectrum Health has pledged their support and a commitment to our success.”

In regards to the new hospital project on the Ferris property, Spectrum Health committed to a nine-month master facility planning process that will be data driven and include physicians, hospital leaders, and patients. In addition, officials noted that Pennock employees would have years of service (seniority) transitioned into Spectrum Health benefit levels. Spectrum Health will honor existing employment contracts between Pennock Hospital and physicians.

“We remain committed to providing a seamless circle of patient care by offering greater access to physician services,” said Sheryl Lewis Blake, Chief Executive Officer of Pennock Health Services. “The connection with Spectrum Health provides an opportunity to increase services locally, while facility and technology replacements are enhanced by the economies of scale achieved by integrating with a larger system.”

According to Brad Johnson, vice chair of the Board of Trustees, “The Pennock Board of Trustees is committed to strengthening the delivery of local health care to our patients and our community. Spectrum Health is making significant financial and non-financial contributions to demonstrate their long-term commitment to our community. We believe this relationship will provide enhanced care as a result.”

In addition, $10 million will be contributed to the Pennock Foundation, which will integrate with the Spectrum Health Foundation. The Pennock Foundation Board of Trustees will become a committee of the Spectrum Health Foundation and will assist the Foundation in carrying out its responsibilities related to development of funding priorities, maximizing philanthropy, and directing the distributions of funds for the benefit of Pennock Hospital and the local community it serves. As explained by board chair, Mike O’Mara, “Local Foundation leadership will remain and all current and future funds will remain for local use. The integration of foundations provides greater opportunity for higher investment returns, while leveraging Spectrum Health’s expertise and systems to enhance foundation opportunities.” Combined with existing Pennock Foundation funds, the Pennock Foundation Committee of the Spectrum Health Foundation will hold over $16M in designated funds to be used for the benefit of Pennock Hospital programs, services, and community health outreach.

The Pennock Board and leadership went through an extended due diligence process that included data gathering and examination, candidate interviews, and site visits with potential partners. In September 2014, the Board voted unanimously to affiliate with Spectrum Health and signed a Letter of Intent.

The decision to integrate was a culmination of a board-led process of education and partner exploration. Secretary of the Board, Dave Baum stated, “The integration with Spectrum Health came after careful exploration. The Hospital Board identified criteria for evaluating a potential partner, including cultural match, the provision of measurable outcomes, and high quality care. Even though Spectrum Health is clearly the quality leader in West Michigan, it was a lengthy process of education, debate, and listening to other independent hospitals and how affiliation impacted their local delivery of care.”

Under the terms of the integration, Spectrum Health will become the sole corporate member of Pennock Health Services.

Spectrum Health is a not-for-profit health system, based in West Michigan, offering a full continuum of care through the Spectrum Health Hospital Group, which is comprised of 11 hospitals including Helen DeVos Children’s Hospital; 170 ambulatory and service sites; 1,200 physicians and advanced practice providers including members of Spectrum Health Medical Group; and Priority Health, a health plan with more than 600,000 members. Spectrum Health is West Michigan’s largest employer with 21,800 employees. The organization provided $294.6 million in community benefit during its 2014 fiscal year. In 2014, Spectrum Health was named one of the nation’s 15 Top Health Systems® by Truven Health Analytics.