CHICAGO - Three Detroit-area hospitals completed a $3.8 billion merger that creates the largest provider in southeast Michigan.
Beaumont Health System, based in Royal Oak, joined with Oakwood Healthcare in Dearborn and Botsford Health Care in Farmington Hills to create the new system, called Beaumont Health. Officials announced Sept. 3 that they closed the deal, five months after talks began.
Beaumont Health will have $3.8 billion of annual revenues, eight hospitals, 153 outpatient sites and more than 33,000 employees. The providers said they expect to save $100 million in the first three years as a result of the merger, without closing any hospitals or laying off employees.
Mergers and acquisitions are popular across the health care sector, which faces a myriad of challenges, and Michigan hospitals have been particularly active, according to health care experts. Beaumont last year tried to merge with Henry Ford Health System, but the deal fell apart after six months.
The three providers won final approval from state and federal regulators over the last few weeks, officials said.
"The integration planning to create a new health care organization from three separate organizations has gone extremely smoothly, which is a credit to the leaders and staff of Beaumont, Botsford and Oakwood," said Brian Connolly, president and CEO of Oakwood Healthcare Inc., in a statement. "This demonstrates our shared dedication to improving quality and delivery of care, making exceptional health care more accessible to our communities. Beaumont Health has a unique opportunity to become a local and national leader, and we are well on our way."
With $2.3 billion in annual revenues, Beaumont is the largest of the three non-profit providers. It has $900 million of outstanding bonds.
Oakwood's revenues total $12 billion and Botsford, a one-hospital system based in Farmington Hills, has $331 million of annual revenue.
The new system will combine all debts and assets and be governed by a single board.