Michigan merger of three not-for-profit healthcare systems finalized

Beaumont Health System, Botsford Health Care and Oakwood Healthcare are now officially one organization — Beaumont Health. The new $3.8 billion not-for-profit health care organization is one of southeastern Michigan’s largest with eight hospitals with 3,337 beds, 153 outpatient sites, 5,000 physicians and more than 33,000 employees.

Federal and state regulatory officials reviewed and approved the affiliation over the summer and granted tax-exempt status to the merged organization. It officially launches as Beaumont Health on Sept. 2.

In contrast to Beaumont Health Systems failed 2012-2013 attempt to merge with Henry Ford Health System which took nearly nine months between when plans were announced and when they officially fizzled, the merger of the Beaumont Health System with Botsford and Oakwood proceeded very rapidly. The plans to affiliate were announced in March and a definitive agreement was reached in June.

“The dedication and hard work of our affiliation team, and the leadership of our boards and my CEO colleagues Brian Connolly and Paul LaCasse, allowed for the completion of the affiliation process in a little more than five months,” stated Gene Michalski, of Oakland, president and CEO of the new Beaumont Health in a press release announcing the finalization of the merger. “This demonstrates our strong, mutual commitment to a common vision for Beaumont Health: medical care of the highest quality and highest value, with a seamless experience, for every patient, every time.”

John Lewis will serve as chairman of the new 14-member Beaumont Health Board. Next steps in the integration will involve appointing the new Beaumont Health executive team, selecting a location for the new Beaumont Health executive offices, planning the integration of the eight individual hospital names with the new Beaumont Health name, and developing the new corporate organizational structure.

To ensure patient care remains the top priority throughout all of this change, Beaumont Health will leverage a Clinical Leadership Council and seven Clinical Transformation Teams made up of physicians, nurses and other patient care professionals. They will identify system-wide best practices and advance patient-centered care.

“Together, we will succeed by placing the patient at the center of all we do,” stated Paul E. LaCasse, D.O., MPH, president and CEO of Botsford Health Care, and chairman of the Clinical Leadership Council, in the press release. “We will work to make Beaumont Health the best and most progressive health care system in Michigan.”