A federal bankruptcy court last week approved a deal allowing the Flint-based McLaren Health Care Corp. to buy Cheboygan Memorial Hospital, a troubled facility located in northern Michigan.
The price was reportedly $5 million. The double-A rated McLaren will now operate 11 facilities across the state.
Cheboygan filed for Chapter 11 bankruptcy March 1.
McLaren’s first attempt to purchase the hospital fell through and the facility closed April 3, laying off 400 employees.
The name will be changed to McLaren-Northern Michigan, Cheboygan Campus.
Cheboygan does not have any outstanding bonds, according to the Municipal Rulemaking Securities Board website.
McLaren joined with a private physician’s group in late 2008 to purchase 35% of the bankrupt North Oakland Medical Center, since renamed the Doctors Hospital of Michigan.