Jun 17, 2020 - Health

Hospital systems Advocate Aurora, Beaumont in talks to merge

A blue Beaumont hospital sign with the hospital buildings in the background.

Beaumont's main hospital in Royal Oak, Michigan. Photo: Elaine Cromie/Getty Images

Advocate Aurora Health and Beaumont Health have started formal merger discussions, the systems said today. The combined system would control 34 hospitals across Illinois, Michigan and Wisconsin, and would generate $17.5 billion in annual revenue, which would be larger than companies like Salesforce or Mastercard.

Why it matters: This transaction — which is being initiated during a pandemic that hospitals say has stretched them financially — would create one of the largest hospital systems in the Midwest. But the evidence has been thorough in showing hospital mergers don't lower prices and don't improve care quality.

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