Three-way health system merger could be final by fall

By BOB OLIVER
Times-Herald Newspapers

DEARBORN — The boards at Oakwood Healthcare, Beaumont Health System and Botsford Health Care unanimously
approved the merging of the organizations into one group.

The merger, which was first announced in March, could be finalized by the fall if the move gets state and federal regulatory approvals.

The new $3.8 billion organization will be titled Beaumont Health and will have eight hospitals and 153 outpatient sites with more than 3,300 beds, 5,000 physicians, 33,093 employees and 3,500 volunteers.

The new health system will be governed by a single board and executive leadership structure with representation from the three organizations with Beaumont President and CEO Gene Michalski, Oakwood CEO Brian Connolly and Botsford CEO Paul LaCasse, D.O., all serving on a CEO Council that will initially be led by Michalski.

The three also will oversee the transition and implementation of the new system and remain president and CEO of their respective organizations during the period of transition.

In a release announcing the merger, Michalski said the names of the individual hospitals will be linked with the new Beaumont Health name and brand over time but nothing has been decided yet in terms of changing their names.

“We recognize and respect the community’s connection
with these legacy names and their strength within their markets,” Michalski said. “We will take our time and seek inside and outside counsel in developing a plan for communicating the new brand.”

Some details, such as a the location for executive
offices, the appointments of board members and the new health system’s executive team have not been finalized yet.

According to published reports, the merger could save the three health systems more than $134 million, which Oakwood Board Chairman John Lewis said will help all three organizations improve the quality and access of care throughout the region.

He also said the new health system would be a national model and “pave the way for an even stronger national voice in the future of health care delivery.”

Lewis will be the future chair of the Beaumont Health board.

Connolly said the transition process has been going well so far.

“We see the signs that we are indeed creating the health care system of the future – a system in which population health can truly be impacted in a very positive way while increasing quality and value for every family we are fortunate to serve,” Connolly said.

(Bob Oliver can be reached at boliver@bewickpublications.com.)

Tags: