Beaumont Health in Southfield, Michigan’s largest health care system, and Spectrum Health in Grand Rapids today announced they have signed a Letter of Intent (LOI) to explore the creation of a new health system.
Leaders from Beaumont Health and Spectrum Health believe that creating a new Michigan-based health system will build a stronger future that provides more accessible, affordable, and equitable health care and coverage for people across the state. Priority Health, Spectrum Health’s Michigan-based health plan, will also be part of the new system.
If approved, the new organization will operate 22 hospitals and 305 outpatient locations, with more than 64,000 employees, including 7,500-plus affiliated, independent, and employed physicians, more than 3,000 affiliated, independent, and employed advanced practice providers, and 15,000-plus nurses.
The new system will operate dual headquarters in Grand Rapids and Southfield, and the president and CEO, along with the senior executive leadership team, will spend time on both sides of the state.
“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,” says Tina Freese Decker, president and CEO of Spectrum Health. “Together, we can provide a more personalized experience that prioritizes individuals’ health while also attracting and retaining great talent to our vibrant communities.”
The organizations have shared goals for the new system, including:
Spectrum Health and Beaumont Health have also developed five guiding principles that will guide the creation of the new organization. The principles are outlined in a letter to the community.
“As health care continues to evolve, there are a number of factors that proactive health systems must consider as they plan for the future,” says Julie Fream, chair of the Beaumont Health Board. “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. The 16- member board will include seven seats appointed by Beaumont Health, seven seats appointed by Spectrum Health, the president & 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 Spectrum Health’s Freese Decker. The first board chair will be Beaumont’s Fream. John Fox, president and CEO of Beaumont Health, will help ensure a successful transition to the new health system. Following this transition, he plans to leave the organization. Beaumont officials says a thorough process will be developed to identify and select the BHSH Beaumont Health president.
There will be no immediate changes to the legacy brands. Those names will remain in their local markets pending adoption of the overall branding plan by the system board. The new BHSH System will work together to determine a path forward that honors both legacy brands and will engage physicians, team members, donors, and the community in that process.
Local fiduciary boards with committed community board members will remain in place to provide governance and leadership to the BHSH Beaumont Health, BHSH Spectrum Health West Michigan, BHSH Spectrum Health Lakeland and Priority Health divisions. Each board will retain local governance oversight over key areas unique to the communities they serve.
“Our organizations share complementary strengths in areas such as quality and have similar missions, visions and values,” says Fox. “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.”
As this process continues to evolve, Spectrum Health and Beaumont Health patients, members and communities will continue to receive exceptional care from physicians and teams they know and trust.
“Spectrum Health has a proven track record of successful integrations and partnerships that improve quality and access to care and coverage, while maintaining important local relationships with physicians, donors, and community members,” says Robert Roth, board chair of Spectrum Health. “Our ultimate focus is ensuring high-quality care for patients and members that is sustainable for today and tomorrow, and we are confident that creating a new system with Beaumont Health will achieve that goal.”
Beaumont Health and Spectrum Health hope to complete this process, which is subject to the execution of an integration agreement and applicable regulatory reviews, this fall.
“As Oakland County’s largest employer, Beaumont Health is vital to the health and well-being of residents throughout southeast Michigan,” says Dave Coulter, Oakland County Executive. “Their system of hospitals provided the essential care needed during the COVID-19 crisis, and the dedication and compassion shown by the doctors, nurses, and entire workforce there was critical.
“The long-term financial health of Beaumont is crucial, not only to the people who seek health care at the hospitals, but for more than 18,000 employees of the health system. I appreciate that concerns about a previously proposed Beaumont alliance were considered and I look forward to hearing more details about the new partnership.”
A letter to the Beaumont Health and Spectrum Health communities, as well as updates on this process, is available at www.formichiganbymichigan.org.
|Beaumont Health is a not-for-profit organization’s more than 33,000 employees. The system includes eight hospitals with 3,375 beds, 155 outpatient sites, nearly 5,000 affiliated physicians, 1,800 advanced practice providers, 9,000 nurses, and 2,000 volunteers. Beaumont’s total annual net patient revenue is $4.6 billion. In 2019, the health system had 179,600 inpatient discharges, 17,600 births, and 577,000 emergency visits. For more information, visit beaumont.org.|
Spectrum Health is an $8.3-billion not-for-profit health system comprising more than 31,000 employees, 14 hospitals (including Helen DeVos Children’s Hospital), a network of care facilities, teams of nationally recognized doctors and providers, and the nation’s third-largest provider-sponsored health plan, Priority Health, currently serving over 1 million members across the state of Michigan.