The University of Michigan Health has officially acquired Lansing, Mich.-based Sparrow Health System to become a $7 billion health system with more than 200 sites of care, according to an April 3 news release shared with Becker's.
Ann Arbor-based University of Michigan Health and Sparrow said they have received the necessary regulatory approvals to partner after announcing their plans in December. Sparrow Health, a six-hospital system with about 10,000 caregivers, officially joined University of Michigan Health effective April 1.
"This is an incredibly proud moment for Sparrow as joining University of Michigan Health enables us to accelerate our expansion of services, build greater breadth and depth of clinical expertise, and seamlessly integrate leading-edge technology and other updates into our facilities," Sparrow President and CEO James Dover said in the release. "We look forward to realizing our shared goal of delivering nationally renowned clinical excellence in an accessible way for patients."
Marschall Runge, MD, PhD, CEO of Michigan Medicine, dean of the University of Michigan Medical School and executive vice president for medical affairs at the University of Michigan, said in the release, "For University of Michigan Health, this milestone advances our organization's long-term vision of a statewide system of highly coordinated care. The completion of this transaction represents a special moment and, as one team, we are well positioned to unlock new opportunities and share best practices while providing our patients with the highest level of care. We are confident that, together, University of Michigan Health and Sparrow will bring increased health care innovation to Mid-Michigan and beyond."
University of Michigan Health said it has committed $800 million in investment to Sparrow, which will be funded through hospital operations and strategic investments over eight years.
In an FAQ posted on Sparrow's website, Sparrow said it eventually will transition to a unified brand, and the combined system will "conduct a thoughtful integration process over the coming months."
To learn more about the deal, click here.