PETOSKEY, Mich.—A deal for Northern Michigan Regional Hospital to join McLaren Health Care Corp., Flint, Mich., is official.

The 214-bed Petoskey hospital last week became the ninth in the McLaren system. The parties signed a letter of intent in July. Northern Michigan's board will retain control of hospital decisions, according to a news release. Financial terms of the agreement weren't shared. “This decision is the best choice for our hospital and patients in northern Michigan,” Northern Michigan President and CEO Reezie DeVet said in the release. Northern Michigan posted operating losses in 2008, 2009 and 2010, with an $8.1 million deficit in 2010. McLaren earned $51.1 million in operating income on $2.1 billion in revenue in its fiscal 2011, which ended Sept. 30, according to a spokesman. Northern Michigan's board has sought an investor for years and in 2009 signed a letter of intent with five-hospital Spectrum Health in Grand Rapids, Mich. Talks never progressed and ended later that year.

DEFIANCE, Ohio—Catholic Health Partners affiliate Mercy, Toledo, Ohio, now wholly owns 23-bed Mercy Defiance Hospital and the 30-physician Mercy Defiance Clinic. Financial terms were not disclosed. Defiance Clinic's 270 employees and a clinic site in Napoleon, Ohio, are part of the deal. Mercy Defiance Hospital had been operated under a 50/50 split between Mercy and the clinic under the terms of a deal agreed on eight years ago. Officials said the move comes amid preparations to create an accountable care organization. “Advancing this model of care for people in northwest Ohio is at the heart of our mission of improving community health, and we are confident about the benefits it will bring for enhanced quality, communications between all providers and efficiency of time and resources to benefit patients,” Mercy President and CEO Andrea Price said in a news release.