Southfield’s Beaumont Health today announced it is exploring a potential partnership with Advocate Aurora Health, which has dual headquarters in Milwaukee and suburban Chicago.
Following approval last week by both boards of directors, the organizations today signed a nonbinding letter of intent that paves the way to deeper discussions to create a health care system that would span Michigan, Wisconsin, and Illinois.
“We are excited to explore this option with an organization as highly regarded as Advocate Aurora Health, known for their track record in health outcomes, population health, and consumer experience,” says John Fox, president and CEO of Beaumont.
“The potential opportunity to leverage the strength and scale of a regional organization while maintaining a local focus and strong presence in Michigan as a leader and major employer is important to us.”
Leaders from the two organizations say that the partnership would allow both not-for-profit health providers to strengthen and align their purposes of serving patients in the upper Midwest.
“Beaumont Health has built a strong reputation for clinical excellence, education, and research,” says Jim Skogsbergh, president and CEO of Advocate Aurora. “This is a unique opportunity to explore a partnership with a like-minded, purpose-driven organization.”
The organizations began discussions at the end of 2019 and paused them to focus on treating and preventing the spread of the COVID-19 pandemic. As a first step in the renewed discussions, the organizations agreed to an equal one-third governance representation of any future partnership between Beaumont, and legacy Advocate Health Care and Aurora Health Care, which merged in 2018 to create Advocate Aurora.
Both systems will work closely with state and regulatory agencies throughout the process; all three attorneys general – Michigan, Wisconsin, and Illinois – were notified earlier this week.
The news comes less than a month after Beaumont announced it ended partnership plans with Ohio’s Summa Health. The two organizations had been working over the last year to create a partnership, signed a definitive agreement in December, and received all necessary state and federal regulatory approvals. The organizations did not give a reason for ending the partnership.
Beaumont has eight hospitals with nearly 3,500 beds, 145 outpatient sites, nearly 5,000 affiliated physicians, 38,000 employees, and 3,500 volunteers.
Advocate Aurora is one of the 10 largest not-for-profit integrated health systems in the U.S. It serves nearly 3 million patients annually in Illinois and Wisconsin across more than 500 sites of care.
For our 2020 list of the largest hospital systems in Michigan, visit here