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Hospitals Become Region’s Largest Health-Care System in $3.8 Billion Merger

Beaumont Health, a new entity created by the consolidation of three regional health-care systems, will be larger than Henry Ford Health System, the St. John Providence Health System or the Detroit Medical Center.

The boards of three hospitals unanimously voted to become one system that will control 30 percent of the health-care market in Oakland, Wayne and Macomb counties. (Photo: Christopher Furlong/Getty Images)
The boards of three hospitals unanimously voted to become one system that will control 30 percent of the health-care market in Oakland, Wayne and Macomb counties. (Photo: Christopher Furlong/Getty Images)

The boards of three big metropolitan Detroit hospitals have unanimously agreed to a $3.8 billion merger to create one organization that will become the largest combined system in the region.

The boards’ votes consolidates Royal Oak-based Beaumont, Dearborn-based Oakwood and Farmington Hills-based Botsford, and creates a non-profit health-care organization comprised of eight hospitals and 153 patient care sites, the Detroit Free Press reports.

The new organization will be called Beaumont Health, the Free Press said. Each of the three hospitals will have representatives on the new organization’s board of directors.

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  • Is the merger a good idea or a bad one? Tell us what you think in the comments.

Combined, the three health systems employ 25,000, but industry experts say some layoffs and reductions in patient beds may occur as a result of the merger, the Free Press said.

Consultant Allan Baumgarten, publisher of Michigan Health Market Review, told the newspaper the combined entity would control about 30 percent of the health-care market in the Tri-County region.

Goals of the merged system announced in March include:

  • Improving the value of health care services through processes that deliver high quality, well-coordinated patient care at the right time in the right setting at an affordable cost.

  • Improving the health, well-being and outcomes of patient populations.

  • Improving care efficiency and patient safety by integrating patients’ medical records for easy access by caregivers across all settings of care.

  • Improving operational efficiency by lowering and spreading costs over a larger system and through group purchasing of supplies and equipment.

Glynn Clayton June 24, 2014 at 07:02 AM
Hope that the get rid of the people who ran Beaumont,, healthy people die at Beaumont!!!!!
Carol Maynard June 24, 2014 at 07:11 AM
I think that it is a good idea. It will help in the sharing of patient information and records. For example, if I have had a heart check up at Oakwood and then I visit a Beaumont Doctor for my allergies, all my information is in one place for the allergy Doctor to see. In the past, I have had a problem with the sharing of information between different hospitals. It will cut down on redundant testing...
Carol Maynard June 24, 2014 at 07:24 AM
I noticed above that many people have complaints about different hospitals. My 14 day old granddaughter got terrible care at U of M Mott hospital as we arrived on December 28th and all the experienced heart Doctors were on Christmas vacation. She needed immediate heart surgery, and she couldn't live until January 3rd for the heart Team to return. So, bottom line, hospitals are made up of common people doing the best that they can under the circumstances and Doctors can't perform miracles. I have very little faith in most Doctors. But, here in the USA, we get better care than in most countries.
Sue Czarnecki June 24, 2014 at 12:00 PM
Mergers always bring a loss of many jobs. And that's NOT a good idea.
l.c. June 24, 2014 at 05:01 PM
beaumont wouldn't be what it is today if not for the many VOLUNTEERS.yet no mention??? too many chiefs maybe?

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