Merger off between Henry Ford Health System and Beaumont Health System

(WXYZ) - The proposed merger of Henry Ford Health System and Beaumont Health System is off.

A message indicating that the two companies would not be combining was sent to Henry Ford Health System employees by Chief Executive Officer Nancy Schlichting.

It reads as follows:

Dear HFHS Team Member,

After much deliberation, the Henry Ford Health System Board of Trustees has voted to allow the Letter of Intent with Beaumont Health System to expire at the end of this week and to not continue further discussions.

This decision was made because it became apparent that two very different perspectives had emerged for the new organization between Henry Ford and Beaumont.  As a result, many of the foundational elements in the Letter of Intent, including preserving two academic medical centers in Detroit and Royal Oak, were no longer supported by some leaders at Beaumont.

This Due Diligence period is exactly for this type of discovery, and we are taking the lessons learned and moving forward in a strong, positive direction.  For the 10th consecutive year, the $4.5 billion Henry Ford Health System experienced positive revenue growth and net income in 2012, and we expect to do the same in 2013.

I am so grateful for all of the contributions of our team members during this process, and have learned a great deal that will help us as we pursue our vision.  Throughout the entire merger process, people repeatedly commented on the professionalism, expertise and engagement of our staff, and I am so appreciative of all of your efforts.

Our commitment to serving the needs of the people of Detroit, Southeast Michigan and beyond is unwavering.  We will continue to be part of the economic revitalization of the region and are excited about continuing to lead this state and this country in meeting and exceeding the needs and expectations of our customers. 

Regards,

Nancy

Officials announced the merger in October of 2012,   saying it would create one of the most comprehensive health systems in Michigan.

Officials with Beaumont said that Tuesday's announcement followed six months of discussions between the two health systems. 

"We have benefited greatly from our merger discussions and have great respect for our colleagues at Henry Ford," says Gene Michalski, president and CEO, Beaumont Health System in a statement. "However, we found through our discussions that we are not aligned on how to achieve our vision for a model health system due to differences in our structures and business models."

He also added: "We are very grateful to our board members, physicians, nurses, leaders and other professionals who worked very hard during the due diligence process with great professionalism and enthusiasm."

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