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Beaumont, Botsford and Oakwood complete $3.8B merger: 4 things to know

Beaumont Health System in Royal Oak, Mich., Oakwood Healthcare in Dearborn, Mich., and Botsford Health Care in Farmington Hills, Mich., have finalized their merger and created a new $3.8 billion nonprofit health system called Beaumont Health. Here are four things to know about the transaction.

1. The full-asset merger has created a health system with eight hospitals with 3,337 beds, 153 outpatient sites, 5,000 physicians and more than 33,000 employees. The new 14-member Beaumont Health Board is made up a blend of representatives from Beaumont, Botsford and Oakwood. Beaumont Health System President and CEO Gene Michalski is serving as the initial president and CEO of the new healthcare organization.

2. Botsford, Oakwood and Beaumont originally signed a letter of intent in March to combine their assets, liabilities and operations under one nonprofit system. Their goals included population health management, physician alignment, health IT integration, cheaper supply costs and other operational  efficiencies. The organizations reached a definitive agreement in June.

3. The initial announcement of the merger came nearly one year after Beaumont's plans to merge with Detroit-based Henry Ford Health System fell through. The deal, which executives said was called off due to cultural differences, would have created a 10-hospital, $6.4 billion system.

4. Before the end of the year, the next steps for Beaumont Health are to appoint the new organization's executive team, determine a location for the executive offices, establish a plan for integrating the eight individual hospital names with the new system's name, and establish a new corporate organizational structure to align the individual entities within the new system.

More articles on health system mergers:
Subra Sripada expected to be CIO of newly merged Beaumont system
5 recent hospital transactions and partnerships  
Lodi Health to join Adventist

 

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