Henry Ford, Ascension Michigan to Form Joint Venture
The joint venture between Henry Ford Health System and Ascension Michigan would reportedly create a $10.5B health system based in Detroit.
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By - Henry Ford Health System and Ascension Michigan have signed an agreement to enter a joint venture that would bring together Ascension’s southeast Michigan and Genesys healthcare facilities and assets with Henry Ford’s. The new health system to be headquartered in Detroit, Michigan, would reportedly be worth $10.5 billion.
The combined health system would employ approximately 50,000 team members at over 550 sites of care across the region, including eight of Ascension Michigan’s hospitals and related care sites, as well as Ascension Brighton Center for Recovery. The hospitals and other sites of care would be rebranded under Henry Ford Health System. All of Henry Ford’s acute care hospitals and other care facilities and assets, including Health Alliance Plan, would also be included in the partnership.
Health system leaders anticipate closing the deal in the summer of 2024, pending federal and state regulatory reviews.
“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,” Robert Riney, President and CEO, Henry Ford Health, said in the announcement earlier this week.
“We share a deeply-rooted dedication to providing world-class healthcare that everyone deserves, regardless of geographic, demographic, or socioeconomic status,” added Riney, who is slated to lead the combined health system in conjunction with a board of directors with representatives from both health systems.
In the announcement, the health systems said a fully integrated health system through the joint venture “would deliver exceptional performance in quality, safety, and service” by unlocking opportunities to coordinate care, expand, and adapt services and care settings to consumer needs in a post-pandemic world. These needs include lower costs, expanded care access, and better outcomes.
“Patients across Michigan will have more access than ever to end-to-end healthcare services, from primary care through complex specialty care and procedures,” said Doug Apple, MD, chief clinical officer at Ascension Michigan. “Together, we will coordinate existing and expanded services to surround our patients with what they need to live healthy lives – with more options closer to home. By focusing on the creation of an integrated, streamlined healthcare journey, we can improve the consumer experience, improve care coordination, and provide superior value.”
The announcement comes on the heels of several mergers and acquisitions in Michigan, including last year’s merger between Sparrow Health System and the University of Michigan Health and the combination of Beaumont and Spectrum Health the previous year.
The joint venture between Henry Ford and Ascension Michigan, however, is not a merger or acquisition since no there would be no cash transaction as the health systems combine. Still, the combined organization is still up against increasingly strict antitrust reviews from state and federal agencies.
The Biden Administration has cracked down on consolidation across industries, issuing an executive order directing the Federal Trade Commission and the US Justice Department to reevaluate and tighten federal rules for mergers and acquisitions, including those in healthcare. The healthcare industry, in particular, has rapidly consolidated despite fears less competition will limit patient care access and increase costs.
