Beaumont Health, Spectrum Health Plan To Merge

MICHIGAN — Beaumont Health and Spectrum Health have signed a letter of intent to explore creating a new health system, the health systems announced Thursday morning.

Officials with both health systems said in a news release that Priority Health, Spectrum Health’s top-rated, Michigan-based health plan, will also be part of the new system.

“Beaumont Health and Spectrum Health are leaders in our respective markets, and by bringing together our organizations to create a new system, we have the opportunity to deliver greater value in high-quality and affordable health care to our communities,” Spectrum Health President and CEO Tina Freese Decker said in a statement. “Together, we can provide a more personalized experience that prioritizes individuals’ health while also attracting and retaining great talent to our vibrant communities.”

“As health care continues to evolve, there are a number of factors that proactive health systems must consider as they plan for the future," Beaumont Health Board Chair Julie Fream added in a statement. "Beaumont Health has found a great Michigan partner in Spectrum Health, and together, we are uniquely positioned for success. As a new organization, we will provide Michiganders an enhanced, high-quality health care and coverage network built for them.”

The new organization will be governed by a new systemwide Board of Directors, officials said. The 16-member board will include seven seats appointed by Beaumont Health, seven seats appointed by Spectrum Health, the President and CEO of the new system and a new board member to be appointed following the creation of the new system. The board will include at least three physicians. The temporary legal name of the new organization will be “BHSH System.”

The new health system will be led by Decker. The first board chair will be Fream. John Fox, President and CEO of Beaumont Health, will help during the transition to the new health system.

The new organization will operate 22 hospitals and 305 outpatient locations, with 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, according to Thursday's announcement.

The new system will operate dual headquarters in Grand Rapids and Southfield, and the President and CEO and senior executive leadership team will spend time on both sides of the state.

“Our organizations share complementary strengths in areas such as quality and have similar missions, visions and values,” Fox said. “We also both have deep relationships in our communities that are built upon providing excellent care and service. Together, we can leverage both of our strengths to further our focus on providing exceptional care for our communities.”