Beaumont Health and Spectrum Health have signed a Letter of Intent (LOI) to bring together our health systems to create a new health system and further build a high-quality health care delivery and insurance network that is For Michigan, By Michigan™. Together, we have an opportunity to make health care more accessible, equitable and affordable for Michiganders and to improve the health of our communities.
Together our strengths will enable us to further build on our already-strong capabilities to drive an even better health care delivery and insurance network that will:
Our new health care network will include:
Signing the LOI is the first step in the process to further explore what creating a new system will look like. We anticipate reaching an integration agreement, completing applicable regulatory reviews and launching our new health system this fall. Our patients and members will continue to receive care and services from the Beaumont Health and Spectrum Health providers and caregivers as they currently do.
We are committed to engaging with our team members, physicians, patients, members and communities. The two organizations will go through a thoughtful integration process.
Leaders from Beaumont Health and Spectrum Health are dedicated to the interests of Michiganders, and believe the best way to improve the health of people across the state is by bringing together our two health systems to create a new system For Michigan, By Michigan™.
Beaumont Health and Spectrum Health share similar missions, visions and values, and have long track records of providing excellent care for our communities. Through our new system, we will build upon our complementary clinical strengths, expand access to more Michiganders, and make important investments to improve the health and wellbeing of people across the state.
With Spectrum Health, Beaumont Health will also gain the benefits of joining with Priority Health, one of Michigan’s top-rated health plans, to accelerate its transition to value-based care, and diversify its payor mix. As a new system, we will meaningfully focus on making care more affordable.
The President & CEO of the new system will be Tina Freese Decker, the President & CEO of Spectrum Health. The first Board Chair will be Julie Fream, the Board Chair of Beaumont Health. John Fox, President & CEO of Beaumont Health, will help ensure a successful transition to the new health system. Following this transition, he plans to leave the organization. A thorough process will be developed to identify and select the BHSH Beaumont Health president.
The 16-member board will include seven seats appointed by Beaumont Health and seven seats appointed by Spectrum Health. The President & CEO will also serve on the board, as well as an additional board member to be appointed by the affirmative vote of at least two-thirds of the Directors of the existing board following the creation of the new system. At least three physicians will also serve on the Board of the new system.
The new system will have dual headquarters in Grand Rapids and Southfield, with the President & CEO and senior executive leadership team spending time on both sides of the state.
Together and as part of a new organization, Beaumont Health and Spectrum Health will increase focus and investment in innovation that makes health care more accessible, equitable and affordable for Michigan and by Michigan. The new organization will build on and leverage current capabilities and expertise to create synergies and innovation for the future. Initial areas of focus include:
A best-in-class digital experience is a critical enabler to transforming the patient, health plan member, provider, and team experience, improving health outcomes, and becoming more affordable. This will integrate care and coverage and leverage connected remote monitoring, virtual care services, data and advanced analytics. This includes investments in a digital engagement platform, digital apps, and personalization capabilities to make the whole experience simpler and more tailored.
We will apply our combined clinical excellence and research expertise, building on our existing strengths to deliver exceptional health outcomes through value-based care. This will include a specific focus on chronic disease given its prevalence and the health care costs associated with treating these diseases. This work will include advanced, predictive analytics that supports clinical decision making, accelerating adoption of evidence-based care and developing innovative models for care and coverage.
Academics and research will be integral to the new organization. Through collaboration with medical and other professional schools, including Oakland University, Wayne State University and Michigan State University, the new organization will serve as a leading teaching and learning institute, fostering innovation to always remain at the forefront of medicine. This will incorporate aspects of education (undergraduate medical education, graduate medical education, continuing medical education, nursing education and allied health education) and build upon existing research infrastructure at the Beaumont Research Institute and Spectrum Health Office of Research and Education.
We do not anticipate any hospitals or services closing as a result of the integration agreement.
Beaumont Health and Spectrum Health are strong brands in our respective markets. There will be no immediate changes to the legacy brands. Those names will remain in our local markets pending adoption of the overall branding plan by the System Board. We will work together to determine a path forward that honors both legacy brands and will engage physicians, team members, donors and the community in that process. The temporary legal name of the new organization will be “BHSH System.”
While we work to come together as a single health system, patients and members should continue to access care in the same ways they currently do.
We are enthusiastic about the prospect of bringing together two of Michigan’s most respected health systems to create a new system that improves the health of individuals throughout the state. Together, we will:
Our new system will allow us to create value for our patients, members and team members through investments in training and development for our people, technologies, facilities and resources to advance care and coverage. Our initial areas of focus will be creating a best-in-class digital experience and building on our existing strengths to deliver exceptional health outcomes through value-based care with a specific focus on excelling in chronic disease management. Academics and research will also be integral to the new organization.
Local Foundations will continue to support health care locally with a commitment that funds raised in local communities will stay in those communities.
Providing quality, safe and exceptional care and service to all patients, health plan members, our communities and team members will always be at the center of our work. In particular, each organization’s efforts to promote health equity among under-represented populations will be prioritized.