Southfield’s Beaumont Health and Summa Health, based in Akron, Ohio, have signed a letter of intent to develop a strategic partnership that will result in the latter becoming a wholly owned subsidiary of Beaumont Health.
Summa Health is one of the largest integrated health care delivery systems in Ohio with annual revenue of $1.4 billion and approximately 7,000 employees. The not-for-profit organization includes a network of four hospitals with a total of 1,300 licensed inpatient beds, community health centers, SummaCare, a physician-hospital organization, and a multi-specialty physician organization.
The arrangement, according to the involved parties, would allow for continued growth and expansion to serve patients better in Michigan and Ohio. Summa Health would maintain its local leadership, including a local board.
“Beaumont Health and Summa Health are already strong and successful health care leaders,” says John Fox, CEO of Beaumont Health. “By welcoming Summa into the Beaumont family, both organizations will share expertise, invest in each other, and continue to thrive as the industry evolves.
“As we expand into Ohio, we will continue to invest in our Michigan employees and operations. This year, we will launch 30 new urgent care centers. Plans to build a new mental health hospital in Dearborn and three new outpatient campuses in Livonia, Lenox Township, and Royal Oak are moving forward as well.”
Dr. Cliff Deveny, CEO of Summa Health, says, “Our board believes Beaumont Health would position our leadership, physicians, and employees for continued success and enhance the quality of care provided to our patients in Akron and northeast Ohio. Beaumont understands and supports our commitment to the communities we serve and will invest in our future growth in Ohio.”
According to Beaumont, SummaCare, Summa’s insurance product, would be able to expand into new markets in Ohio and the company’s capabilities and expertise in risk-based health insurance contracts and services could benefit Michigan employers.
Beaumont Health is Michigan’s largest health care system with $4.7 billion in total annual net patient revenue. The not-for-profit organization consists of eight hospitals with 3,429 beds, 145 outpatient sites, nearly 5,000 affiliated physicians, and 38,000 employees.