Spectrum Health Is Merging With Beaumont
The move would give the West Michigan Health Care giant a foothold in the Detroit market, but is that a good thing?
Deadline Detroit is reported Wednesday that Grand Rapids based Spectrum Health is considering and has possibly agreed to a merger with metro Detroit's Beaumont Health, in a move that would give the company it's first foray into the larger east side market.
That merger will become official this morning (Thursday) when Spectrum holds a press conference at 11:30am. In a press release, Spectrum CEO Tina Freese Decker announced:
“Beaumont Health and Spectrum Health are leaders in our respective markets, and by bringing together our organizations to create a new system, we have the opportunity to deliver greater value in high-quality and affordable health care to our communities. Together, we can provide a more personalized experience that prioritizes individuals’ health while also attracting and retaining great talent to our vibrant communities.”
The release went on to say that:
Beaumont Health and Spectrum Health are strong brands in their respective markets. There will be no immediate changes to the legacy brands. Those names will remain in their local markets pending adoption of the overall branding plan by the System Board. The new BHSH System will work together to determine a path forward that honors both legacy brands and will engage physicians, team members, donors and the community in that process.
Reporter Eric Starkman at Deadline Detroit writes that the internal missives indicated that Freese-Decker will lead the new company following the merge. The press release verified that.
Beaumont has agreed to merge with Spectrum Health, a Grand Rapids-based hospital network focused on Western Michigan, the company announced internally Wednesday... Terms of the proposed deal couldn’t be learned. It is still subject to various regulatory approvals.
Merging with Beaumont would more than double Spectrum’s size in some areas. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the state and has 30,000 employees. Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. However, Beaumont Royal Oak is one of the busiest surgical centers in the country.
The merger would still have to be approved by the boards of both companies as well as Michigan Attorney General Dana Nessel.
Starkman was awarded an Excellence In Journalism award by the Detroit chapter of the Society for Professional Journalists for his Deadline Detroit coverage of the imploding Beaumont hospital system.