Nonprofit Mich. Hospital Groups Approve 3-Way Merger
June 24, 2014 | Read Time: 1 minute
The boards of three Michigan hospital systems voted Monday to approve a prospective union that would create a single, $3.8-billion nonprofit health network, reports the Detroit Free Press.
If approved by state and federal regulators, the three-way merger of Beaumont Health System, Oakwood Healthcare, and Botsford Hospital would create the biggest nonprofit medical network in southeastern Michigan. The new organization, to be called Beaumont Health, would encompass eight hospitals, 153 patient-care sites, and more than 33,000 employees.
Top officials with the three partners said they expect all eight hospitals to remain open but that greater efficiencies from joining forces will initially save at least $134-million. The consolidation reflects a wave of health-care mergers in Michigan and nationwide as providers look to cut costs, as demanded by the Affordable Care Act, and gain leverage in negotiating payments from insurers.
