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Joint Venture Expands Surgical, Inpatient Services at St. Joseph Mercy Chelsea

Saint Joseph Mercy Health System (SJMHS) and Michigan Medicine, the academic medical center of the University of Michigan, have signed a definitive agreement to establish a master affiliation and a joint venture for the 133-bed St. Joseph Mercy Chelsea hospital (SJMC), effective immediately. 

Following Trinity Health Michigan Board's previous approval, the University of Michigan Board of Regents approved the master affiliation and joint venture, which will allow two health systems to join forces and enhance care provided to the communities. 

As announced in March 2017, the two health systems signed a letter of intent to examine the feasibility and structure of the proposed joint venture. The two parties have completed this due diligence period and finalized the terms of the definitive agreement under which SJMHS and Michigan Medicine will both have an interest in St. Joseph Mercy Chelsea. As both the majority and managing partner, SJMHS will provide leadership, nurses and staff and continue to oversee all hospital operations.

Michigan Medicine serves patients from across the state through a network of relationships with health systems, hospitals and physicians. A strategic priority in expanding this statewide network is a greater presence in communities across the state, including communities adjacent to Ann Arbor as well as in West Michigan. 

The joint venture builds upon the existing Michigan Medicine family medicine residency clinic located on the St. Joseph Mercy Chelsea campus since 1978. The joint venture expands the surgical procedures that Michigan Medicine provides at St. Joseph Mercy Chelsea, as well as increases access to Michigan Medicine physicians for patients in Chelsea and across western Washtenaw County. 

Construction will begin shortly on the seventh and eighth operating rooms at St. Joe's Chelsea. More services and surgical procedures will continue to be explored as the partnership advances. All St. Joseph Mercy Chelsea staff will remain SJMHS employees, and no staff reductions will take place as a result of this agreement. Additional colleagues will be recruited as needed to support medical and surgical volumes.  All Michigan Medicine employees, including doctors, residents and house officers who may work at Chelsea, will remain employees of the University of Michigan. St. Joseph Mercy Chelsea will retain its Catholic identity and continue to abide by the Ethical and Religious Directives.

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