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June 18, 2021updated 24 Jun 2021 3:16pm

Spectrum Health and Beaumont Health sign LOI for merger

The new health system will own 22 hospitals and 305 outpatient locations, with a team of about 64,000 members.

Spectrum Health and Beaumont Health have signed a letter of intent (LOI) to potentially merge and create a new health system in the Michigan state of the US.

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The new organisation, temporarily called BHSH System, is expected to make healthcare more accessible, affordable and equitable for citizens across the state.

After a successful merger, the combined entity will run 22 hospitals and 305 outpatient locations, with a team of about 64,000 members.

The BHSH system will have nearly 7,500 physicians, approximately 3,000 advanced practice providers and more than 15,000 nurses.

In addition to providing equitable healthcare and service, the organisation will invest in new digital technologies. The aim is to offer convenient services via virtual and in-home care, among others.

Spectrum Health’s Michigan-based health plan, Priority Health, will be included in the new system.

Spectrum Health president and CEO Tina Freese Decker said: “Together, we can provide a more personalised experience that prioritises individuals’ health while also attracting and retaining great talent to our vibrant communities.”

To be headed by Decker, the new health system will have headquarters in Grand Rapids as well as Southfield.

After the transaction, Beaumont Health’s president and CEO John Fox will leave the organisation.

Fox said: “Our organisations share complementary strengths in areas such as quality and have similar missions, visions and values.

“Together, we can leverage both of our strengths to further our focus on providing exceptional care for our communities.”

A new systemwide 16-member board of directors will oversee the new organisation and will include a minimum of three physicians.

Beaumont Health and Spectrum Health will serve their respective markets without any immediate changes to their brands. The System board will decide on an overall branding plan.

Local fiduciary boards will manage the BHSH Beaumont Health, BHSH Spectrum Health West Michigan, BHSH Spectrum Health Lakeland and Priority Health units.

The merger is subject to an integration agreement and relevant regulatory approvals.

Earlier this month, non-profit health systems Sentara Healthcare and Cone Health abandoned their plans for a merger first announced in August last year.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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