Southfield’s Beaumont Health and Ohio’s Summa Health have signed a definitive agreement to make Summa a subsidiary of Beaumont. The organizations signed a letter of intent in July before beginning a review of their clinical, regulatory, and financial systems. Details of the deal were not disclosed.
“Conversations between leaders and staff at both organizations have been going well. We very much look forward to working even more closely together now that we have a definitive agreement in place,” says John Fox, CEO of Beaumont. “As we grow our presence in Summa’s market area, our significant investments in our Michigan employees and operations will continue and be further enabled.”
The newly combined organization will use the financial strength of both organizations to fund the health system’s overall plan, which includes capital and operating projects.
“Our board is confident that this partnership will further our abilities to not only provide excellent clinical services throughout northeast Ohio, but also position our leadership, physicians, and employees for continued success and growth,” says Dr. Cliff Deveny, president and CEO of Summa.
Summa will retain a local board to support the oversight of clinical operations in Ohio. SummaCare, Summa’s health insurance operation, will remain part of Summa.
“Over the past few months, our team has spent a considerable amount of time with the Beaumont team,” says Anthony Lockhart, board chair of Summa. “We believe that by becoming part of the Beaumont family, we will be able to gain efficiencies from being part of a larger organization, further invest in delivering high-quality, patient-centered care, and improve local access to the services most needed by our patients and communities.”
The organizations are in the process of submitting the agreement to state and federal regulatory agencies for final approval and hope the transaction will close by the end of the first quarter. The combined organization will have $6.1 billion in total revenue, 45,000 employees, and more than 6,000 affiliated physicians.
“The planned addition of Summa will allow us to serve more people and become a regional health care leader,” says John Lewis, board chair of Beaumont. “The efficiencies from transactions of this nature enable us to directly support our medical personnel.”
Beaumont has $4.7 billion in total annual net patient revenue, eight hospitals with 3,429 beds, 145 outpatient sites, nearly 5,000 affiliated physicians, and 38,000 employees. Summa has total annual revenues of $1.4 billion, four hospitals with 1,300 inpatient beds, and about 7,000 employees.