Beaumont Health and Spectrum Health merge into one healthcare system

Beaumont Health, Spectrum Health merge to create new healthcare system

February 08, 2022
by John R. Fischer, Senior Reporter
Beaumont Health and Spectrum Health merged into a new healthcare system that will temporarily be called BHSH System on February 1. It is the biggest healthcare system in Michigan, reported the Detroit Free Press.

The new system is based in Grand Rapids and Southfield and operates 22 hospitals and 305 outpatient locations. It consists of more than 64,000 team members, including more than 7,500 affiliated, independent and employed physicians, more than 3,000 affiliated, independent and employed Advanced Practice Providers, and more than 15,000 nurses.

“Together, we will leverage our complementary strengths to innovate and make a positive impact for our communities and their health. We look forward to working with our physicians, team members, patients, health plan members and partners across our state to provide health care and coverage that is accessible, affordable, equitable and exceptional,” said Spectrum Health president and CEO Tina Freese Decker, who has been chosen as the future BHSH System president and CEO.

The two originally announced plans to merge last June and become a healthcare system that can provide greater access to affordable and equitable healthcare and coverage across Michigan. This includes investing in digital technologies and services such as virtual and in-home care and creating a culture that attracts and retains top healthcare professionals to live and work in Michigan.

They originally expected to complete the merger by the fall but this was pushed back to winter, possibly due to a crackdown by the Biden administration on mergers and acquisitions in the U.S., including in healthcare, according to the Detroit Free Press. Both submitted all requested information for federal and state regulatory approval. A review period by the Federal Trade Commission had also expired, allowing the merger to take place.

The organizations have already set up a board of directors and system leadership team for the new system, with seven members appointed from Beaumont and seven from Spectrum. Decker will also serve on the board, along with an additional board member that will be named at a future point.

BHSH System will conduct internal and national searches to fill open and interim roles. It is currently conducting a nationwide search for the president of BHSH Beaumont Health. Beaumont’s current president, John Fox will leave the organization this month.

“I am very proud of our Beaumont team members for their many accomplishments, and I’m especially proud of the compassionate, extraordinary care they have provided for our patients throughout this long pandemic. I’m confident BHSH System will become one of the best healthcare systems in the nation,” said Fox.

Patients and health plan members are encouraged to continue using the same ways to access care that they currently rely on and will still be able to attend their usual facilities, physicians and health providers and insurance plans. Spectrum’s Michigan-based health plan, Priority Health, will also be part of the new system. The plan currently covers 1.2 million people and is the second largest in Michigan. Spectrum claims it is the fastest growing plan.

Spectrum has 14 hospitals in West Michigan and Beaumont has eight in metro Detroit. Beaumont previously merged with Oakwood Hospital and Botsford Hospital for $3.8 billion in 2014, according to ABC7 News/WXYZ Detroit.

The two will still remain separate legal entities that will be managed by the new BHSH system, in accordance with the structure of the deal, known as a member substitution. As a result, the merger did not require state attorney general approval.

No hospitals will be closed as part of the merger.

Financial details on the merger were not disclosed.