CareLink Announces Full Ownership by Allegiance

April 7, 2010

Jackson, Mich. — CareLink of Jackson has announced it will now become a fully owned subsidiary of Allegiance Health, following the decision by Borgess Health to withdraw its partnership in the facility. CareLink has been jointly owned by Allegiance and Borgess for the past seven years. Financial terms were not disclosed.

“We have appreciated the collaborative ownership from Allegiance Health and Borgess, which has allowed us to establish a foundation of care that is unique to our region,” said Mark Fall, CEO of CareLink of Jackson. “Given Allegiance’s long history of patient-centered care, we are excited to now be a part of the Allegiance Health family.”

CareLink of Jackson is a 64-bed specialized hospital providing care for seriously ill patients who require extended time to regain their health. CareLink provides services for medically complex patients needing specialized care and a longer length of stay than a traditional acute care hospital.

“While we have valued our collaborative ownership of CareLink with Allegiance Health, it was always anticipated that Borgess would eventually exit the joint venture.  We are pleased that this transition will allow CareLink and Allegiance to continue to fulfill their mission to patients across the Jackson region,” said Mike Alfred, executive director of Business Development and Community Relations at Borgess Health.

“CareLink is an excellent facility and this agreement assures that the services provided there will remain in our community” said Georgia Fojtasek, president and CEO of Allegiance Health. “This will also allow us to sustain the long-term acute care that was introduced to patients through this partnership with Borgess Health and will provide for the continuation of jobs for the staff and physicians at CareLink.”

The transition to sole ownership by Allegiance Health will have no impact on staffing at the facility, which presently numbers 130. Because of the unique care services provided at CareLink, the facility will continue to be managed by Greentree Healthcare Partners, who specialize in the delivery of post-acute care programs.