In a bid to increase its affect statewide, Southfield-based Beaumont Well being stated Thursday it has entered merger talks with the west Michigan well being system Spectrum Well being.
Leaders of Beaumont and the Grand Rapids-based Spectrum Well being system stated Thursday they’ve signed a letter of intent to discover creating a brand new well being system. Precedence Well being, Spectrum’s Michigan-based medical insurance plan, could be a part of the brand new entity.
The merger would lead to a brand new system with 22 hospitals, 305 outpatient places and 64,000 staff, in accordance with the well being methods. The brand new well being system would function twin headquarters in Grand Rapids and Southfield, with the chief management crew spending time on each side of the state, in accordance with the announcement.
Beaumont’s newest enlargement bid appears more likely to trigger controversy. Michigan’s largest hospital system ended talks in October with an Illinois- and Wisconsin-based system after that potential deal was broadly contested by a broad coalition of physicians, nurses, hospital employees, group members and lawmakers.
A tie-up with Advocate Aurora Well being, primarily based in Milwaukee and Downers Grove, Illinois, would have made the nonprofit Beaumont Well being a part of a 28-hospital well being system throughout Wisconsin, Illinois and Michigan. Critics argued the merger would lead to a lack of native management over the well being system.
John Fox, president and chief government officer of Beaumont Well being, has been a lightning rod for critics of Beaumont Well being’s previous merger talks. However Fox plans to go away the group after the transition to the brand new well being system, in accordance with the press launch.
The merged system could be led by Tina Freese Decker, president & CEO of Spectrum Well being. The primary board chair could be Julie Fream, who now heads the board at Beaumont Well being.
“We’ll proceed to have relationships with Wayne State College, Oakland College and Michigan State College,” Decker stated in an interview with The Detroit Information.
“We’re actually proud that we’ve got so many residencies and fellowships, at each Beaumont Well being and Spectrum Well being, and we proceed to develop in these, in addition to investing in analysis and in medical trials.”
Beaumont Well being’s Fream stated stated physicians will likely be included within the planning and transition.
“Just lately our system added three physicians which are in our system to our Board of Administrators, and this has given us numerous perception into the wants and the longer term course the physicians want to take the group,” Fream stated, noting the three new positions carry to 6 the variety of docs on the board.
Beaumont Well being and Spectrum leaders are arguing the merger would enhance the effectivity and affordability of well being care due to the elevated dimension and economies of scale, enable it to speculate extra money into operation and enhance care and well being protection as a result of it might embody Precedence Well being. The mixed well being system would even be higher capable of entice and retain high well being care professionals in addition to enhance in-home and digital care, in accordance with the joint press launch.
Fream stated the well being methods are transferring ahead on regulatory approvals and the proposed merger may very well be accepted as quickly as this coming fall.
A merged Beaumont/Spectrum system would come with:
305 outpatient places
64,000 crew members
7,500-plus affiliated, impartial and employed physicians
3,000-plus affiliated, impartial and employed Superior Observe Suppliers