- Beaumont Health and Spectrum Health signed a "formal integration agreement," marking the next step in a merger bid that was first announced in June.
- The combination of the two Michigan operators is expected to be complete this fall if it passes regulatory review, the systems said on Thursday.
- The new combined system will be led by Spectrum Health's CEO Tina Freese Decker and will temporarily go by the name BHSH System.
If combined, together the two will have a formidable presence in the state of Michigan, controlling a total of 22 hospitals, a sizable outpatient business and a health plan that covers 1 million Michiganders.
The new system's footprint will flank both sides of the state and have a combined revenue of about $13 billion. Currently, Spectrum Health's 14 hospitals dot the western side of the state while Beaumont's eight hospitals hug the Detroit area on the opposite side of the state.
Mergers and acquisitions have continued in spite of the upheaval caused by the COVID-19 pandemic. Early data suggests that hospitals are seeking more regional partnerships instead of buying up smaller, independent hospitals. That trend is reflected in the fact that there have been fewer deals through the first and second quarters of 2021, but the sheer size of the deals greatly surpasses the size of last year's deals through Q2, according to a report from hospital consultancy Kaufman Hall.
Beaumont has been on the hunt for a sizable, regional partner, but until now those deals have fallen through.
Last summer, Beaumont and Advocate Aurora Health inked a deal to explore a merger. But just four months later, the two called off the talks amid the coronavirus pandemic and pushback from Beaumont doctors concerned about a lack of competition.
Before that, a potential deal with Ohio-based Summa Health fell apart after the two paused discussion to battle the initial outbreak of the pandemic. In that instance, the systems had secured approval from regulatory authorities.