CHICAGO -- Three Detroit-area hospitals are in talks to merge into a single $3.8 billion system.
Beaumont Health System, Oakwood Healthcare and Botsford Health Care announced Friday they have signed a letter of intent to merge into a new system.
The new organization would have eight hospitals.
"We are three successful health care organizations driven by a shared desire to collectively build upon our success in improving quality, efficiency and value in health care delivery," Gene Michalski, CEO of Beaumont Health System, said in a statement. "By combining our strengths, resources, experience and capabilities, we'll be well positioned to meet future health care challenges while expanding access to high-quality, high-value care for patients throughout the region."
Royal Oak-based Beaumont, which is Oakland County's largest employer, had signed a letter of intent in 2012 to merge with Henry Ford Health System in a $6.6 billion deal. The deal was called off in March 2013, with officials citing "cultural differences." Beaumont has $2.2 billion in annual revenues, three hospitals, and $900 million in outstanding bonds.
Oakwood has four hospitals. Bostford is a one-hospital system based in Farmington Hills.
The new system would combine all debt and assets, and be governed by a single board with executive leadership tapped from all three organizations.
