In a statement, HFHS CEO Nancy Schlichting said “it became apparent that two very different perspectives had emerged for the new organization between Henry Ford and Beaumont. As a result, many of the foundational elements in the letter of intent, including preserving two academic medical centers in Detroit and Royal Oak, were no longer supported by some leaders at Beaumont.”
Gene Michalski, president and CEO of Beaumont, said in a statement the due diligence period found that the two health systems “are not aligned on how to achieve our vision for a model health system due to differences in our structures and business models.”
Although HFHS or Beaumont did not outline more specifics of negotiations, previous reports indicated that physicians and clinical heads at Beaumont did not want the merger to occur.
Beaumont and HFHS signed the letter of intent to merge in October. The merger would have created a $6.4 billion, 10-hospital system.
More Articles on Hospital Mergers:
Baylor, Scott & White Merger on Pace for June Closing
Beaumont Health Officials Lobby Board to Reconsider Henry Ford Health Merger
Illinois Health Board Approves 2 System Mergers
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