Henry Ford Health-Ascension deal nears close
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Henry Ford Hospital in Detroit. Photo: Raymond Boyd/Getty Images
Henry Ford Health plans to close on its joint venture with Ascension Michigan at the end of this month, bringing eight more hospitals under the branding of an expanding health care powerhouse.
The big picture: Under the deal, Detroit-based Henry Ford Health will take on eight of Ascension Michigan's hospitals and a recovery center, creating a $10.5 billion organization with 50,000 employees at 550 sites across the state, according to the Free Press.
What they're saying: The move will result in "improving outcomes, access and experience; prioritizing population health and value-based care, championing equity for all, and partnering to advance innovation," Henry Ford Health said in a news release.
Context: Henry Ford Health's operations center is in Metro Detroit, with five of its six hospitals in the region. The system also extends to Saginaw, Jackson and other areas in mid-Michigan, according to its website.
- The Ascension properties include hospitals in Genesee County, Detroit, Oakland County and Macomb County.
Zoom out: This comes as Henry Ford Health begins a $3 billion megaproject near its headquarters in New Center with the Pistons and Michigan State.
- Henry Ford and MSU broke ground in June on a $335 million research center.
Catch up quick: The agreement leaves the health system headquartered in Detroit, with the Ascension sites rebranding under Henry Ford Health and Henry Ford Health CEO Bob Riney remaining in charge, according to the Free Press.
- Ascension, based in St. Louis, has been posting operating losses and selling assets to shore up its finances, according to Crain's. Another system, MyMichigan Health, recently acquired three other Ascension Michigan hospitals.
Between the lines: Ascension is a nonprofit Catholic health system, and Henry Ford Health, which is not Catholic, has said both organizations are committed to "working to maintain the Catholic identity" of the Ascension facilities.
- "Conversations on the future state of the Catholic identity of these facilities are ongoing," a press release announcing the deal in October added.
- The Archdiocese of Detroit said in a statement that its archbishop and other leaders "will work with Ascension Michigan to understand how they will preserve their Catholic identity going forward."
Zoom out: Mergers and consolidations are changing the way the Michigan health care industry operates, the Free Press reported in November. At least 50 Michigan hospitals have been involved in consolidation efforts in the last three years.
- The pandemic, inflation, insufficient Medicaid and Medicare reimbursements and staffing struggles are all factors leading to consolidation, according to the Free Press.