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AG Nessel Designates Hancock Nonprofit as Recipient of Millions in Charitable Funds

LANSING – Today, Michigan Attorney General Dana Nessel designated Copper Shores Community Health Foundation as the recipient of more than $20 million in charitable funds arising from the 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 Attorney General released this video announcing the designation.

Pursuant to the 2013 contribution agreement, the joint venture was required to expend $60 million in capital commitments within 10 years of closing the transaction or pay any shortfall to a local charitable healthcare foundation designated by the Department of Attorney General. In the final report of the independent monitor, the joint venture was determined to be $21,786,091 short of its capital commitment.

The Department conducted a search of charitable foundations with healthcare purposes in the western half of Michigan’s Upper Peninsula, screening based on size, proximity to the former Portage Health Hospital service area, and other factors. Copper Shores Community Health Foundation, a non-profit organization in Hancock, was the top candidate. With over a decade of experience serving the Houghton County and larger Copper Country area, the Copper Shores Community Health Foundation issues grants, and provides healthcare-related programming addressing adult and child trauma as well as the impact of suicide, assists victims of sexual assault, and conducts trainings to combat human trafficking.  

“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 been monitoring for-profit purchases of non-profit hospitals since the 2010 purchase of the Detroit Medical Center by Vanguard and has been posting information regarding these transactions on the Charitable Asset Sales webpage. If you believe that someone has violated state charity law, please contact the Department:

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

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