Great Lakes Wire

Michigan Attorney General Dana Nessel has designated Copper Shores Community Health Foundation as the recipient of over $20 million in charitable funds. These funds arise from a 2013 joint venture between Portage Health, a non-profit hospital operator in Hancock, Michigan, and Lifepoint Holdings 2, LLC, a for-profit subsidiary of Lifepoint Hospitals.

The joint venture was obligated to spend $60 million in capital commitments within ten years or pay any shortfall to a local charitable healthcare foundation chosen by the Department of Attorney General. An independent monitor's final report found the joint venture $21,786,091 short of its commitment.

The Department conducted a search for suitable charitable foundations with healthcare purposes in western Michigan’s Upper Peninsula. Copper Shores Community Health Foundation emerged as the top candidate due to its experience serving Houghton County and the larger Copper Country area. The foundation issues grants and provides healthcare-related programming addressing trauma, suicide impact, sexual assault assistance, and human trafficking training.

“When a charitable nonprofit transitions to for-profit ownership, my Department scrutinizes the agreement, tracks promised investments and, when necessary, steps in to ensure funds are delivered,” Nessel said. “There may have never been a greater need for rural health support than right now, as our state is facing massive cuts at the federal level. I am excited to award this money to Copper Shores and trust that they will continue their critical work advancing the health and well-being for the communities they serve.”

The Department of Attorney General’s charitable trust unit has monitored for-profit purchases of non-profit hospitals since Vanguard's 2010 purchase of Detroit Medical Center. Information regarding these transactions is available on the Charitable Asset Sales webpage.

For concerns about violations of state charity law:

Charitable Trust Section

P.O. Box 30214

Lansing, MI 48909

517-335-7599

Fax: 517-241-3771

Toll-free: 877-765-8388

Online complaint form