Michigan Capital Healthcare will have another chance to win approval of its proposed 50-50 joint venture with Columbia/HCA Healthcare Corp. this week.
Ingham County Circuit Judge James Giddings has scheduled a hearing for Michigan Capital, the parent of 369-bed Michigan Capital Medical Center in Lansing, Mich., to present new evidence about the proposed partnership.
Earlier, Giddings voided the deal following a lawsuit brought by Michigan Attorney General Frank Kelley in June. Giddings said 50-50 joint ventures between not-for-profit and for-profit hospitals violate Michigan laws governing public charities.
Under the proposed transaction, Columbia would pay half the value of Michigan Capital's assets, or $43.8 million, in exchange for operating control and half of future profits of the new company. Columbia also would contribute $10 million in capital and other resources to the joint venture.
Giddings left open the possibility of a full sale of the hospital's assets to Columbia. Michigan Capital said it has discussed selling all of the hospital's assets to Columbia, with an option to buy back 50% if its appeal is successful. A deal with Columbia would make Michigan Capital the only for-profit hospital in the state.