ROYAL OAK, Mich. (WXYZ) - Beaumont Health Systems, Botsford Health Care and Oakwood Healthcare announced Friday they signed a letter of intent, and started exclusive negotiations about combining their operations into a new health care system.
The boards of the three companies approved a letter of intent, that would form a new, $3.8 billion health system, combining assets, liabilities and operations under unified executive board leadership. It would combine their eight hospitals and 153 other patient care sites, into one collaborative health network.
"We are three successful health care organizations driven by a shared desire to collectively build upon our success in improving quality, efficiency and value in health care delivery," says Gene Michalski, CEO of Beaumont Health System. "By combining our strengths, resources, experience and capabilities, we'll be well positioned to meet future health care challenges while expanding access to high-quality, high-value care for patients throughout the region."
The companies say the merger would create a comprehensive and collaborative health care network focused on advancing quality of care and access to care for people throughout the region.
"This is really all about improving patient care for men, women and children in our respective communities," says Brian Connolly, president and CEO of Oakwood Healthcare. "If we join forces, we can and we will use quality data and standardized best-practice treatment protocols across the continuum of care for improved health and greater value for the families we serve."
The goals of the new organization include improving the value of health care services, improving the health, well-being and outcomes of patient populations, improving care efficiency and patient safety, and improving operational efficiency.
All three organizations will maintain their existing medical school relationships.
The new health system will not be final until due diligence is completed, and the boards of the three companies approve a definitive agreement.