June 17, 2021 – Beaumont Health (Southfield, MI) and Spectrum Health (Grand Rapids, MI) have signed a letter of intent for a deal that would create a new health system.
Spectrum reported $8.3 billion in revenue in 2020, compared to Beaumont’s $4 billion.
The merger would create a $12 billion health care company operating 22 hospitals and 305 outpatient locations with more than 64,000 employees and 7,500 independent physicians, the largest healthcare footprint in Michigan, according to Crain’s Detroit Business. The agreement would create the state’s largest employer.
The new system, with a temporary legal name of BHSH System, would have a dual headquarters in Grand Rapids and Southfield, the companies said.
Spectrum President and CEO Tina Freese Decker would serve as the top executive for the new company. John Fox, president and CEO of Beaumont, would assist in the transition in the merger then depart the company.
Spectrum’s integrated insurer, Priority Health, will also be overseen by the new health system. Priority accounted for more than $5 billion of Spectrum’s $8 billion in revenue last year.
Terms of any deal were not disclosed, but the nonprofit organizations hope to complete a deal by fall.
This deal is the third major merger attempt for Beaumont since 2019.
Beaumont signed an LOI to acquire Summa Health (Akron, OH) in July 2019, but cancelled that deal in May 2020 as revenues declined during the COVID-19 pandemic.
In June 2020, Beaumont announced another letter of intent to merge with Advocate Aurora Health (Downers Grove, IL). However, talks stalled in August and ultimately ended in October.