Ascension is unwinding its presence in Michigan’s acute care market, continuing a sweeping effort to reshape its national footprint and stabilize its finances.
The St. Louis-based Catholic health system has plans to sell its remaining four hospitals in Michigan to South Bend, Ind.-based Beacon Health System. Overall, the proposed sale includes four Ascension hospitals, 35 outpatient clinics and an ambulatory surgery center in southwest Michigan. Pending regulatory approval, the transaction is expected to close this summer.
The transaction is the latest in a series of divestitures for Ascension as it looks to revamp its hospital portfolio and make further progress on its financial turnaround.
Over the last 16 months, Ascension has sold or consolidated 34 hospitals across the country, including 11 hospitals in Michigan alone — three sold to Midland-based MyMichigan Health and eight offloaded and rebranded under a joint venture with Detroit-based Henry Fordy Health.
The Henry Ford Health deal effectively marks Ascension’s exit from Michigan in name, even as it maintains a financial interest. Financial terms of the joint venture were not disclosed.
Outside of Michigan, Ascension has continued to trim its portfolio, including the sale of eight hospitals in Illinois to Prime Healthcare and five Alabama hospitals to UAB Health. Ascension received about $820 million from the sale of these 13 hospitals.
As Ascension continues to recalibrate and reduce its acute care footprint, the sale to Beacon marks a major step in reshaping its regional presence — and a potential turning point in its financial recovery.
