University of Michigan Health, Charlotte, Ionia, St. Johns, Carson City and Lansing with 500 primary care providers and specialists.
The deal was approved Thursday by the University of Michigan Board of Trustees. Sparrow Health System’s board of directors signed the deal in late November.
The acquisition, pending regulatory approvals, is expected to be completed in the first half of 2023.
Sea:New unified Beaumont-Spectrum healthcare system rebranded as Corewell Health
Sea:Beaumont-Spectrum merger takes another step forward with formal integration agreement
UM Health spends $800 million
“This agreement strengthens UM Health’s ability to provide quality healthcare in communities beyond southeast Michigan and expands our mission as a statewide referral destination for the most critically ill patients,” said Paul Brown, chairman of the Board of Trustees.
As part of the deal, Ann Arbor-based UM Health will spend $800 million over the next eight years to fund Sparrow’s hospital campuses, facility projects, operations, and other “strategic investments.”
Joseph Ruth, vice president and COO of Sparrow Health System, said in a statement that there are renovations and improvements in cardiology, oncology, orthopedics and neuroscience services in the neonatal intensive care unit at EW Sparrow Hospital in Lansing.
“This influx of investment in Sparrow services will provide job growth and career development opportunities that would otherwise not be available to our caregivers,” Ruth said.
UM Health’s expanding footprint
The deal includes Sparrow’s Physicians Health Plan, an insurance plan that provides coverage to more than 70,000 members and 300 employers statewide, as well as a Medicare Advantage plan.
It was unclear on Thursday whether Sparrow’s name would be retained or renamed as part of the deal.
“In the coming year, we hope to bring strategic updates to the Sparrow brand to appropriately reflect the relationship between our organizations,” said Mary Masson, spokesperson for UM Health.
With the addition of Sparrow, UM Health will become a $7 billion organization with more than 200 care facilities across the state, including the main university hospital CS Mott Children’s Hospital, Von Voigtlander Women’s Hospital, Frankel Cardiovascular Center, Kellogg Eye Center, UM. Health West and Rogel Cancer Center.
“For the University of Michigan Health, this is an important step towards our long-term vision for a highly coordinated system of care throughout the state, a vision Sparrow is embracing and is excited to develop,” said Dr. Marschall S. Runge, CEO of Michigan Medicine, dean of the UM School of Medicine and vice president of medical affairs at the University of Michigan.
“UM Health will, after closing, create a clinical care network that builds on the strengths of a world-class UM academic medical center and a highly successful community-based healthcare system. Together, the two organizations will focus on bringing increased healthcare innovation to mid-Michigan and beyond.”
This is the latest in a series of new acquisitions and mergers between Michigan hospitals last year.
In January, legacy Beaumont Health and Spectrum Health systems combined It is in a mega merger to create the new Corewell Health, the state’s largest healthcare system with 22 hospitals and more than 60,000 employees.
And the former North Ottawa Community Health System based in Grand Haven Purchased By Trinity Health in October. It was Trinity’s ninth Michigan hospital, based in Livonia.
Contact Kristen Shamus: firstname.lastname@example.org. Follow him on Twitter @kristenshamus. Subscribe to Free Press.
Leave a Comment