University of Michigan Health is acquiring Lansing-based Sparrow Health System, the largest hospital system in mid-Michigan with six campuses in Charlotte, Ionia, St. John’s, Carson City and Lansing with 500 primary care providers and specialists.
The deal was approved by the University of Michigan Board of Regents on Thursday. Spiro Health System’s board of directors signed off on the agreement in late November.
Pending regulatory approvals, the acquisition is expected to be completed in the first half of 2023.
Other:The newly merged Beaumont-Spectrum health system has been named Homewell Health
Other:The Beaumont-Spectrum merger takes another step with a formal merger agreement
UM Health spends $800 million
“This agreement strengthens UM Health’s ability to provide quality health care in communities beyond Southeast Michigan, expanding our mission as a statewide referral site for the most critically ill patients,” said Paul Brown, Board of Directors. Chairman, said in a statement.
As part of the arrangement, Ann Arbor-based UM Health will spend $800 million over the next eight years on Sparrow hospital campuses, financing facility projects, operations, and other “strategic investments.”
Among them are renovating the neonatal intensive care unit at EW Sparrow Hospital in Lansing and expanding services in cardiology, oncology, orthopedics and neurology, said Joseph Roth, executive vice president and COO of Sparrow Health System. said in a statement.
“This infusion of investment in Sparrow Services will provide job growth and career development opportunities that would otherwise not be available to our caregivers,” Roth said.
Expanding UM Health’s footprint
The agreement includes the Sparrow Physicians Health Plan, an insurance plan that provides coverage to more than 70,000 members and 300 employers across the state, as well as a Medicare Advantage plan.
It was unclear Thursday whether Sparrow will keep its name or change as part of the deal.
“Over the next year, we expect to introduce strategic updates to the Sparrow brand to more appropriately reflect the relationship between our organizations,” said UM Health spokeswoman Mary Mason.
With the addition of Sparrow, UM Health will become a $7 billion organization with more than 200 care sites across the state, including its flagship University Hospital, CS Mott Children’s Hospital, Von Vogtlander Women’s Hospital, the Frankel Cardiovascular Center, Kellogg Eye Center, UM Health West and Rogel Cancer Center.
“For University of Michigan Health, this is an important step toward our long-term vision for a highly coordinated statewide care system; a vision that Sparrow also embraces and is excited to build on,” said Dr. Marshall S. said Rong, CEO of Michigan Medicine, dean of the UM School of Medicine and executive director of medical affairs at the University of Michigan.
“With the merger, UM Health will create a clinical care network that will strengthen UM’s world-class academic medical center and create a highly successful community-based health system. Together, the two organizations will serve in mid-Michigan and beyond.” Focus on promoting health care initiatives.
It’s the latest in a series of recent acquisitions and mergers among Michigan hospitals in the past year.
In January, Beaumont Health and Spectrum Health Systems merged in Megamerger to create the new Corewell Health, the state’s largest health system with 22 hospitals and more than 60,000 employees.
And the former Community Health System of North Ottawa, based in Grand Haven, was acquired by Trinity Health in October. It becomes Livonia-based Trinity’s ninth hospital in Michigan.
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