Beaumont Health, Spectrum Health Announce Merger Plans



Merging the two health systems would create the largest system in Michigan, operating 22 hospitals and 305 outpatient centers, as well as a health plan.

Michigan-based Beaumont Health and Spectrum Health have announced that they plan to merge to create the largest health system in the state.

The announcement dropped yesterday said the two health systems have signed a letter of intent to explore a health system merger deal. The new organization could operate 22 hospitals and 305 outpatient centers, with over 64,000 team members, including more than 7,500 affiliated physicians, 3,000 advanced practice providers, and 15,000 nurses.

The new organization, which would be dubbed BHSH System temporarily, would also include Spectrum Health’s health plan, Priority Health.

“Beaumont Health and Spectrum Health are leaders in our respective markets, and by bringing together our organizations to create a new system, we have the opportunity to deliver greater value in high-quality and affordable health care to our communities,” Tina Freese Decker, president and CEO of Spectrum Health, stated publicly yesterday.

“Together, we can provide a more personalized experience that prioritizes individuals’ health while also attracting and retaining great talent to our vibrant communities,” added Decker who has been tapped to lead BHSH System if the merger deal is completed.

In a letter to the community, Beaumont Health board chair Julie Fream explained why two of Michigan’s leading health systems have decided to combine.

“We are enthusiastic about the prospect of bringing together two of Michigan’s most respected health systems to create a new system that improves the health of individuals throughout the state. Together, we will have the ability to further build a high-quality health care and coverage network that is For Michigan, By Michigan,” Fream wrote.

The merger deal will be guided by five principles, according to Fream, which include community engagement, physician, clinician and team member involvement, exceptional and equitable care for all, competitive value, and “positioned to thrive.”

The latter principle involves combining systems to enable investment in “innovative and digital capabilities to improve both the experience and health care outcomes for all Michiganders.”

The two health systems will also continue investments in their communities during the transition, such as capital business plans that have already been approved by respective boards. But future capital investments would include “medical education, private rooms, digital and innovative medical technologies, physician offices, behavioral health and outpatient facilities, as well as basic infrastructure needs.”

BHSH System would be headquartered in Grand Rapids and Southfield, where president and CEO, as well as the senior executive leadership team, will share their time. The health system merger deal is expected to close this fall.

For more information: beaumont health spectrum health announce merger plans