Henry Ford Health and Ascension Michigan announced plans on Wednesday to join operations in southeast and mid-Michigan, a move that makes the merged operations the largest health care provider in Metro Detroit, according to an industry overview.
The two hospital systems have entered into a joint venture agreement to combine Ascension’s southeast Michigan and Genesys health care facilities and assets with Henry Ford’s, according to a news release from the two organizations. The venture is expected to “dramatically expand and enhance” healthcare in the area, the health systems say.
The combined Henry Ford Health and Ascension operations would give it almost 44% of the Detroit area hospital market by revenue, according to an overview of 2021 financial records released last year by the Michigan Health Market Review, an analysis done by Minneapolis health care expert Allan Baumgarten. Beaumont Health, which merged with west Michigan’s Spectrum Health in early 2022, would follow with about 30% of market share in the Detroit area, according to Baumgarten’s analysis. The Detroit Medical Center is third at 12.7%.
Eight Ascension hospitals and related sites of care, as well as Ascension Brighton Center for Recovery, are included in the venture and will be rebranded under Henry Ford Health. All of Henry Ford’s acute care hospitals and other care facilities and assets are included as well.
The combined organization will produce $10.5 billion in operating revenue and will be headquartered in Detroit and led by Henry Ford Health CEO Bob Riney. A Board of Directors with representatives from both organizations also will oversee operations.
“Together we can expand healthcare services and deliver innovations in care – from prevention and early detection through the treatment of complex conditions – to more people and communities across our state, including those who are most vulnerable,” Riney said in the news release. “We share a deeply-rooted dedication to providing world-class healthcare that everyone deserves, regardless of geographic, demographic, or socioeconomic status.”
The new integrated healthcare delivery network is expected to expand access to care and lower costs for patients, according to the news release.
The health system is expected to employ 50,000 people across over 550 sites of care, up from the 33,000 people currently employed by Henry Ford Health at over 250 sites of care. The venture will expand career pathways and opportunities for career development, increasing Henry Ford and Ascension’s ability to attract talent.
The joint venture follows other major mergers and acquisitions by the some state’s largest health care providers in the last year. Michigan Medicine formerly acquired Sparrow Health in April after announcing plans for the merger late last year. Beaumont and Spectrum Health systems similarly combined in 2022 and rebranded under the new name Corewell Health.
Ascension acute-care hospitals included in the venture are: Ascension St. John Hospital, Ascension River District Hospital, Ascension Genesys Hospital, Ascension Macomb-Oakland Hospital’s Madison Heights and Warren campuses, Ascension Providence Hospital’s Novi and Southfield campuses, and Ascension Providence Rochester Hospital.
Ascension’s southwest and northern Michigan hospitals will remain members of the national health ministry, separate from Henry Ford Health.
Ascension is one of the nation’s largest Catholic health systems. Both Ascension and Henry Ford Health are committed to maintaining the Michigan facilities’ Catholic identity, the said in the news release.
The health systems clarified that the joint venture is not a merger or acquisition and there will be no cash transaction. The next step is for the organizations to undergo regulatory review at the federal and state level.