HOLLAND (WHTC-AM/FM) — Officials from two of Michigan’s largest hospital systems, Beaumont Health and Spectrum Health, announced they’ve signed a letter of intent aimed at a merger.
The statement emailed to media Thursday morning indicated a plan to make health care “more accessible, affordable and equitable” with a goal of statewide coverage. Priority Health, Spectrum Health’s Michigan-based health plan and the third-largest health insurer nationwide, will also be part of the new system.
“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,” said Tina Freese Decker, Spectrum Health president and CEO, who is set to lead the new, combined system. “Together, we can provide a more personalized experience that prioritizes individuals’ health while also attracting and retaining great talent to our vibrant communities.”
Julie Fream, chair of Beaumont Health’s board, said, “As health care continues to evolve, there are a number of factors that proactive health systems must consider as they plan for the future. Beaumont Health has found a great Michigan partner in Spectrum Health, and together, we are uniquely positioned for success. As a new organization, we will provide Michiganders an enhanced, high-quality health care and coverage network built for them.”
Goals for the new system, include:
- Improving health and health equity
- Enhancing the consumer experience using new digital technology and more-convenient services such as virtual and in-home care
- Improving health care quality, value and outcomes
- Making health care more affordable by creating more-efficient avenues for care, statewide
- Ensuring the voices of team members and physicians are heard, as a way to better serve patients and as a recruitment and retention tool for medical professionals.
A new board of 16 directors will be formed for the combined system, which well be temporarily called BHSH System, with seven seats appointed by current Spectrum Health officials, the President & CEO of the new system, and a new board member to be named after the new system is formed. At least three board members will be doctors.
Freese Decker, the President & CEO of Spectrum Health. The first Board Chair will be Julie Fream, the Board Chair of Beaumont Health. John Fox, President & CEO of Beaumont Health, will help ensure a successful transition to the new health system. Following this transition, he plans to leave the organization. A thorough process will be developed to identify and select the BHSH Beaumont Health president.
The new organization will operate 22 hospitals — Spectrum currently operates 14 — with 305 outpatient locations, with more than 64,000 team members, including more than 7,500 affiliated, independent and employed physicians, more than 3,000 affiliated, independent and employed advanced practice providers, as well as more than 15,000 nurses. The new system will operate dual headquarters in Grand Rapids and Southfield, with Freese Decker and senior executive leadership team spending time on both sides of the state, according to the joint statement.
The joint station also indicated officials from both hospitals “hope to complete this process, which is subject to the execution of an integration agreement and applicable regulatory reviews, this fall.”
A letter to the Beaumont Health and Spectrum Health communities, as well as updates on this process, is online: www.formichiganbymichigan.org.
