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Henry Ford Health System, Beaumont Health System Announce Merger

Detroit-based Henry Ford Health System and Beaumont Health System in Royal Oak, Mich., have signed a letter of intent to combine their operations into a new $6.4 billion organization, they announced at a press conference today.

Both health systems' boards have approved the deal, which will include combining all assets, liabilities and operations under unified executive leadership. The 10 hospitals and 200 patient care sites under both systems will also integrate, creating one of the most comprehensive health systems in Michigan, according to the release.

According to the release, Beaumont and HFHS have been studying and deliberating together on how to face the changing healthcare environment. "Strong, leading health systems — such as ours — are responding to current healthcare challenges by forming relationships with likeminded peers. For Beaumont, the partnership helps to build on our long history of excellence in patient care and research. We've been looking at this opportunity for some time. Our mutual goal is to be national leaders in healthcare, and in many ways [both systems] already are," said Gene Michalski, CEO of Beaumont Health System, during the press conference. "We do not have to partner, we have chosen to partner," he added.

"Our shared vision is to form a new organization that will develop improved approaches to patient care that will lead the nation in quality outcomes, service, access and reliability," said Nancy M. Schlichting, CEO of Henry Ford Health System. "It is a bold and exciting vision that will mean easier, more accessible and more integrated care for our patients."

The letter of intent details the following areas of the merger agreement:

Governance — The new organization will be led by a single board with representation from both organizations, including physician and nursing leaders as well as community and business leaders and health experts.
Name preservation — HFHS and Beaumont Health will continue to use their names, but a name for the new organization will be developed by both parties to link the two organizations.
A combined foundation — The existing foundations for both systems will combine into one single foundation.
Medical staffs — The medical staffs of both systems will remain independent.
Research — The systems will integrate their research programs to enhance education and discovery.
Medical schools — Both systems will continue current commitments to medical school relationships and will continue to pursue education opportunities.

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