Henry Ford, Beaumont announce plan to form new $6.4 billion organization

2 aim to reach final agreement next year to merge their 10 hospitals, 200 other facilities


A deal is in the works between two health care system giants in Michigan.

Beaumont Health System and Henry Ford Health System have signed a letter of intent to combine their operations into a new $6.4 billion organization.

The two aim to reach a final agreement next year to merge their 10 hospitals and 200 other facilities.

The boards of the two not-for-profit systems authorized the development of the new organization that will include all of the assets, liabilities and operations of both Beaumont and Henry Ford under unified executive leadership and with integration of their combined 10 hospitals and 200 other patient care sites. The new, combined organization will be one of the most comprehensive health systems in Michigan and the region.

The organizations said Wednesday's announcement followed months of study and deliberation on how to continue their nationally recognized industry leadership in the face of the changing health care environment.

The details of the letter of intent approved by both organizations include:

Governance: The new organization will be led by a single board with equal representation from both organizations. The new board will include physician and nursing leaders from both organizations, as well as community and business leaders and health experts. A special committee comprised of representatives from both boards will oversee the integration of the two partners into a unified health system.

Name Preservation: The two organizations will continue to use their highly respected brand names. A name for the new organization, which will be used to link the two established names, will be developed by both parties.

A Combined Foundation: The existing Beaumont Foundation and the Henry Ford Foundation will develop a plan to combine into a single foundation. Donors will still be able to designate gifts to the hospital or programs of their choice. The designated uses of prior gifts will be honored and the naming of facilities, chairs and programs maintained.

Medical Staffs: Medical staffs from both entities will remain independent. Physician groups in both health systems are highly respected for providing benchmark quality care. The new organization will embrace the strengths of private practice, group practice and employed physicians in an environment that fosters respect, quality, safety and collaboration.

Research: A collaborative research program will enhance education and discovery, bringing great value to this region by attracting researchers and funding.

Medical Schools: Medical education will remain a primary mission with continued commitment to all existing medical school relationships. Collaborative opportunities will be pursued to maximize value to the organization and the community.

The two organizations will begin an extensive integration process led by committees covering such areas as quality, medical staff, efficiency and information technology, all which will be overseen by a newly formed board integration committee, which will include membership from Henry Ford and Beaumont.

For more information, visit www.FutureCareforMichigan.com.

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