Under the agreement, Summa Health will become a subsidiary of the Southfield, Mich.-based system. If the transaction is approved by state and federal regulatory agencies, the acquisition will expand Beaumont’s hospital count to 12 and increase total revenue to $6.1 billion. Summa will retain its local board to oversee clinical operations, and its health plan, SummaCare, “will remain an integral part” of the system, according to a press release.
The definitive agreement comes six months after the health systems signed a letter of intent to merge and more than year after Summa Health began looking for a strategic partner.
“Conversations between leaders and staff at both organizations have been going well. We very much look forward to working even more closely together now that we have a definitive agreement in place,” Beaumont CEO John Fox said in a press release.
More articles on transactions and valuation:
Avera Marshall Medical Center buys Minnesota hospital
ChristianaCare adds 72-bed Maryland hospital to its network
University of Washington Medical Center adds 2nd campus
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.