Beaumont, Spectrum sign formal integration agreement with more details
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Beaumont Health and Spectrum Health have taken a step forward in their quest to create the state’s largest health system, signing a formal integration agreement that spells out more details on how they would combine.
Southfield-based Beaumont and Grand Rapids-based Spectrum said Thursday that following the agreement, they hope to launch the combined health system by this fall pending regulatory approvals. They are temporarily calling the combined system BHSH System.
The two systems said in June that they had signed a letter of intent to explore a merger that would create a $12 billion, 22-hospital health system with its own health insurer. The combination would also be the biggest employer in the state.
Financial terms and details of the newly signed agreement were not disclosed in the statement.
“We have worked together to develop a deeper understanding of each organization. I greatly appreciate the efforts of our teams, and I remain confident that together we will create an optimal health system For Michigan, By Michigan,” Tina Freese Decker, president and CEO of Spectrum Health and the future BHSH System president and CEO said in a statement.
The health systems said the agreement incorporates the goals that were part of the letter of intent, including improving health and health equity, enhancing the consumer experience, and improving healthcare quality, value and outcomes.
“This is an important step forward to bring together our organizations to create a new system that improves the health of individuals throughout the state,” Beaumont Health President and CEO John Fox said in the statement. “We continue to receive positive feedback about what our teams can do together, and we are excited about the future.”
The health systems trademarked the phrase “For Michigan, By Michigan” and created a new website for the updates on the integration.
Crain’s reported last week federal regulators are considering the deal and the effect it would have on competition in Michigan healthcare. The Federal Trade Commission has been meeting with large employers and other stakeholders who may have reason to oppose the merger.