Merger between Henry Ford Health System, Beaumont Health System called off

Henry Ford's Board of Trustees votes to let letter of intent with Beaumont expire

Author: Joanne Marie Hoopes, ClickOnDetroit.com writer
Published On: May 21 2013 05:00:28 PM EDT   Updated On: May 21 2013 06:11:03 PM EDT
Henry Ford and Beaumont hospitals merger
DETROIT -

The merger between Henry Ford Health System and Beaumont Health System has been called off Tuesday.

Nancy Schlichting, chief executive officer at Henry Ford shared the news with employees and physicians this afternoon.

In a letter she wrote, "After much deliberation, the Henry Ford Health System Board of Trustees has voted to allow the letter of intent with Beaumont Health System to expire at the end of this week and to not continue further discussions.

This decision was made because it became apparent that two very different perspectives had emerged for the new organization between Henry Ford and Beaumont.  As a result, many of the foundational elements in the letter of intent, including preserving two academic medical centers in Detroit and Royal Oak, were no longer supported by some leaders at Beaumont. This Due Diligence period is exactly for this type of discovery, and we are taking the lessons learned and moving forward in a strong, positive direction."

Watch: Can hospital mega merger work?

Beaumont Health System and Henry Ford Health System had signed the letter of intent to combine their operations into a new $6.4 billion organization back in 2012.

The two giants hoped to reach a final agreement to merge their 10 hospitals and 200 other facilities.

The organizations previously said the decision to merge can after months of studying and deliberations on how to continue the nationally recognized industry leadership in the face of the changing health care environment.