IRON MOUNTAIN — Dickinson County Healthcare System could potentially be acquired by Marquette-based UP Health System under an agreement announced today.

The parties have signed a non-binding letter of intent that allows them to evaluate the transaction.

In a press release, representatives of DCHS and UPHS said it will take at least 60 to 90 days to determine if the acquisition should go forward.

“We are delighted about the prospect of Dickinson County Healthcare joining UP Health System,” said Bill Edberg, chairman of the Dickinson County Healthcare System Board of Trustees. “However, we know that an ownership change alone will not ensure our hospital’s success. Over the next several weeks, we will be working with UP Health System and other key stakeholders throughout this region to examine the opportunities and challenges that exist for us and how we can better work with many key partners to strengthen health care here today and into the future.”

UPHS includes three hospital campuses in the Upper Peninsula: UPHS-Marquette — the system’s tertiary campus, UPHS-Portage in Hancock and UPHS-Bell in Ishpeming.

“Our team is pleased to have signed this letter of intent, and we look forward to learning more about the health system and community,” said Brian Sinotte, market president of UPHS. “Dickinson County Healthcare System and UP Health System share a commitment to ensuring that everyone in this region has access to the quality care they deserve right here in the U.P. We are eager to engage in more in-depth discussions with stakeholders across the region to evaluate how a collaboration between our organizations could work and how we can all partner to improve the health and wellbeing of the people Dickinson County Healthcare serves.”

UP Health System is affiliated with Duke LifePoint, a joint venture of Duke University Health System Inc. and LifePoint Health, a private health care company that owns and operates facilities in 22 states.

DCHS operates as a Michigan municipal health facility corporation under Public Act 230. It is owned by the county but receives no direct county appropriations or taxpayer support and has been self-sustaining since moving to its U.S. 2 facility in 1996. The hospital has been seeking a regional partner to gain financial stability after Bellin Health of Green Bay, Wis., withdrew from a purchase agreement in May. Bellin, which had signed a letter of intent in December 2017 to acquire DCHS, cited significant unpredicted losses in DCHS operations as reason for ending talks.

Through May of this year, DCHS shows a loss of about $3.5 million, coming on the heels of an estimated $14 million loss in 2017. With recent initiatives, however, it posted a slight profit in May and the hospital continues to be recognized as a national leader in patient safety.

“Access to care close to home is vital in Dickinson and Iron counties,” said Henry Wender, chairman of the Dickinson County Board. “I am excited that Dickinson County Healthcare System and UP Health System are exploring a potential collaboration.”

Both organizations stressed the importance of making DCHS the first choice for local care. Following the due diligence process, which is projected to take a minimum of 60 to 90 days, negotiations would begin on a definitive agreement.

The DCHS Board of Trustees met this morning and voted unanimously to sign the letter of intent, said Joe Rizzo, public relations manager.

Dickinson County Healthcare System is a 49-bed community hospital with more than 80 active physicians and more than 800 staff members. It annually treats more 200,000 patients.

In addition to its three hospitals, UPHS operates 42 primary and specialty care clinics throughout the region. UP Health System-Bell and UP Health System-Portage are both part of the LifePoint Health network, and UPHS-Marquette is part of LifePoint’s joint venture with Duke University Health System, Duke LifePoint Healthcare. UPHS has more than 3,000 employees and also is home to the UP Telehealth Network.

State Sen. Tom Casperson, R-Escanaba, also commented on today’s announcement: “I am thrilled that Dickinson County Healthcare System, UP Health System, Dickinson County officials and many other stakeholders are working together for the greater good of our communities. As I have again been reminded of personally, we must work to ensure the people we serve have access to quality health care, and through the shared commitment of these varied stakeholders towards that end, I am optimistic that the result of this collaborative effort will be a stronger health care system serving the region for generations to come,” he said.

Jim Anderson can be reached at 906-774-3500, ext. 26, or janderson@ironmountaindailynews.com.