Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Beaumont, Botsford and Oakwood Reach Definitive Agreement on $3.8B Merger

Beaumont Health System in Royal Oak, Mich., Botsford Health Care in Farmington Hills, Mich., and Oakwood Healthcare in Dearborn, Mich., have reached a definitive agreement to combine their operations into a $3.8 billion healthcare organization.

Under the agreement, the three organizations are creating Beaumont Health, a new nonprofit health system.

Beaumont Health will include eight hospitals with 3,337 beds, 153 outpatient sites, 5,000 physicians and 33,093 employees, according to a news release. 

The three organizations signed a letter of intent in March to combine their assets, liabilities and operations under one nonprofit system.

"This milestone demonstrates our mutual commitment to working together to improve quality, efficiency and value for our patients," said Gene Michalski, president and CEO of Beaumont Health System, in the release.

Mr. Michalski will serve as the initial CEO of the new health system. In addition, Mr. Michalski, Oakwood President and CEO Brian Connolly and Botsford President and CEO Paul LaCasse, DO, will sit on a "CEO Council," which will oversee the transition. Each organization's medical staff will remain independent, but a "Clinical Leadership Council," led by physicians, nurses and other providers, will drive physician integration. 

"The work to integrate these three great organizations, while challenging, is progressing well," said Mr. Connolly, in the release. "We see signs that we are indeed creating the healthcare system of the future — a system in which population health can truly be impacted in a very positive way while increasing quality and value for every family we are fortunate to serve."

The proposed merger now moves into the regulatory approval phase. With approval, the organizations expect to close the transaction in the fall.

More Articles on Healthcare Industry Mergers:

Financial Need is No Longer Leading Driver in Healthcare Acquisitions
150 Hospital Transactions and Partnerships
County Officials Plan to Save Kern Medical Center With Kern Health Systems Merger

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars