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Spectrum, Beaumont merger could mean higher costs, experts say

The merger between Grand Rapids, Mich.-based Spectrum Health and Southfield, Mich.-based Beaumont Health could mean higher costs for consumers, some experts say, Bridge Michigan reported Feb. 1.

Studies by Rand Corporation and Harvard University show that mergers create higher costs and less quality care, according to the report.

"Whether it's one hospital joining with another or being bought up by a larger system, there are lots of examples of these around the country, and it never turns out better for patients in terms of their costs," Bret Jackson, president of the nonprofit Economic Alliance for Michigan, told the publication.

Leaders of the new system — temporarily called BHSH system — said the merger will improve access and quality of care.

"We're focused on our patients and we're focused on our people," Nancy Susick, interim president of BHSH Beaumont Health, told Bridge Michigan. "We really want to improve healthcare and … make it as affordable as possible for the citizens and consumers in Michigan."

The merger was launched Feb. 1 and creates a 22-hospital system that will employ more than 64,000 people. It also has a provider-sponsored health plan called Priority Health.

Read more here.

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