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Letter of Intent


Munson Healthcare, CHE Trinity Health Announce Letter of Intent for Purchase of Mercy Hospital Cadillac, Mercy Hospital Grayling

TRAVERSE CITY, Mich., and LIVONIA, Mich. – Munson Healthcare and CHE Trinity Health announced today they have signed a non-binding letter of intent under which Munson Healthcare would purchase Mercy Hospital Cadillac and Mercy Hospital Grayling.

The letter of intent also includes the purchase of the Mercy Manor long-term care facility in Grayling and the affiliated Mercy Home Care and Hospice services in Cadillac, Grayling and Houghton Lake.

The Cadillac and Grayling hospitals are currently owned by CHE Trinity Health and have been affiliated with Munson Healthcare for the past 15 years. Munson Healthcare has managed both hospitals for 11 of those years. Shared management has helped Munson Healthcare and the two Mercy hospitals recruit top quality physicians and establish best practices for emergencies, such as heart attacks and strokes. It also has allowed cost-saving joint efforts on electronic health records and purchasing.

“As the next practical step in our partnership, we have signed this agreement to ensure we can continue to meet the health care needs of the people of Cadillac and Grayling long into the future,” said Ed Ness, president and CEO of Munson Healthcare. “This purchase will make patient care even more effective and efficient in these communities, and will bring a new level of collaboration and coordination of services across the Munson Healthcare system.”

Next steps include leaders from both hospitals and health systems working together to ensure a smooth transition, including performing due diligence and seeking government and corporate approvals. Informational meetings with community members also are planned.

A Transition Task Force, led by retiring Mercy Hospital Cadillac CEO John MacLeod, is being established to ensure community needs are met during the transition. The task force will involve leaders from both hospitals and Munson Healthcare. Together, they will identify specific tasks to be completed, including developing various ways to keep the community, physicians, employees, donors, and volunteers updated on the process. Community comments are valued and welcomed via phone at (231) 935-2000 or email at

At the core of this agreement is a shared interest in ensuring a strong health care system in northern Michigan. Under this plan, Mercy Hospital Cadillac and Mercy Hospital Grayling will join Munson Medical Center and Paul Oliver Memorial Hospital as owned affiliates of the Munson Healthcare system. 

Munson Healthcare and CHE Trinity Health will continue the system-level partnerships that have helped build a strong regional health care system for the people of northern Michigan. These include collaboration on improving the quality of care provided, information technology enhancements, and joint purchasing through Northern Michigan Supply Alliance. 

“The insights gained by the long-standing partnership between Munson Healthcare, Mercy Hospital Cadillac, and Mercy Hospital Grayling will be put to good use as these hospitals transition into the Munson Healthcare system,” said Roger Spoelman, president and CEO, West Michigan Region at CHE Trinity Health. “Moving forward, we believe this is the best way to serve the health care needs of these northern Michigan communities.”

While the current management arrangement has worked well, this new approach would strengthen the level of integration needed to be successful in the rapidly changing health care environment. Significant changes to the health care industry during the past four years require hospitals to be even more effective and efficient. For Mercy Hospital Cadillac and Mercy Hospital Grayling, new ownership would eliminate some of the administrative complexity that resulted from being owned by one system and managed by another.

“Delivering high-quality health care to the people of northern Michigan requires hospitals to respond to challenging times,” said Stephanie Riemer-Matuzak, CEO of Mercy Hospital Grayling. “Providing an exceptional care experience to our patients and community has always been our primary goal and we believe closer alignment with Munson will allow us to continue to deliver great local and regional care to our friends, family, and neighbors in the communities we serve.”

MacLeod said the needs of the respective communities, physicians, and staff will be taken to heart as the transition moves forward.

“It is important to remain focused on doing what is best for everyone involved – especially our patients,” he said. “Our goal is to achieve optimal collaboration and coordination of health care services across northern Michigan to best serve our residents. All hospitals involved serve a large rural population with significant distances between communities. This makes it critical for health care providers to work together. This new corporate structure positions the hospitals for continued success.”

 Mercy Hospital Cadillac  Mercy Hospital Grayling
 Mercy Hospital Cadillac  Mercy Hospital Grayling 

About CHE Trinity Health
CHE Trinity Health is the second-largest Catholic health care delivery system in the nation, serving people and communities in 20 states from coast to coast with 86 hospitals, 109 continuing care facilities and home health and hospice programs that provide more than 2.8 million visits annually. It was formed in May 2013, when Trinity Health and Catholic Health East completed their consolidation to strengthen their shared mission, increase excellence in care and advance transformative efforts with their unified voice. With annual operating revenues of about $13.3 billion and assets more than $19 billion, the new organization returns more than $800 million to its communities annually in the form of charity care and other community benefit programs. CHE Trinity Health employs nearly 87,000 people, including nearly 3,200 employed physicians. Committed to those who are poor and underserved in its communities, CHE Trinity Health is known for its focus on the country's aging population. As a single, unified ministry, the organization is the innovator of Senior Emergency Departments, the largest not-for-profit provider of home health care services — ranked by number of visits — in the nation, as well as the nation’s leading provider of PACE (Program of All Inclusive Care for the Elderly) based on the number of available programs. For more information, visit either or

About Munson Healthcare
Munson Healthcare is a nonprofit network of hospitals and related organizations delivering a broad array of health care services to the residents of 24 counties in Michigan’s northern Lower Peninsula and eastern Upper Peninsula. Munson Healthcare includes eight community hospitals committed to the well-being of the each patient and to delivering high quality, safe, affordable health care. Eight supporting organizations contribute to regional health care through coordinated services that result in quality, convenient, easy to use care for patients and their families.

Munson Healthcare owns Munson Home Health, Munson Medical Center, Munson Mobile Imaging, the Munson Dialysis Center, North Flight EMS, and Paul Oliver Memorial Hospital in Frankfort. Munson Healthcare has joint ownership of Great Lakes Mobile PET, Northern Michigan Supply Alliance, and the Northwest Michigan Surgery Center. Munson Healthcare manages Kalkaska Memorial Health Center and Kalkaska Dialysis Center, Mercy Hospital Cadillac, and Mercy Hospital Grayling; and has affiliation agreements with Charlevoix Area Hospital, Otsego Memorial Hospital in Gaylord, and West Shore Medical Center in Manistee. For more information, please visit