Beaumont exploring partnership with other healthcare system to expand into Midwest

Posted at 9:37 AM, Jun 17, 2020
and last updated 2020-06-17 09:37:02-04

(WXYZ) — Beaumont Health is exploring a potential partnership with Advocate Aurora health that would create a healthcare system expanding into the Midwest.

Both organizations signed a non-binding letter of intent that will pave the way to deeper discussions.

“We are excited to explore this option with an organization as highly regarded as Advocate Aurora Health known for their track record in health outcomes, population health and consumer experience,” said John Fox, president and chief executive officer, Beaumont Health. “The potential opportunity to leverage the strength and scale of a regional organization while maintaining a local focus and strong presence in Michigan as a leader and major employer is important to us.”

The potential partnership would allow both not-for-profit health providers to strengthen and align their purposes of serving the needs of individuals, families and communities throughout the Upper Midwest.

“Beaumont Health has built a strong reputation for clinical excellence, education and research. This is a unique opportunity to explore a partnership with a like-minded, purpose-driven organization,” said Jim Skogsbergh, president and chief executive officer, Advocate Aurora Health.

Advocate Aurora and Beaumont began discussions at the end of 2019. However, partnership talks paused to allow both organizations to focus on COVID-19. As a first step in their renewed discussions, the organizations agreed to an equal one-third governance representation of any future partnership between Beaumont and legacy Advocate Health Care and Aurora Health Care organizations, which merged in 2018 to create Advocate Aurora Health, according to a press release.

Both systems said they will work closely with state and regulatory agencies throughout the process, which began with notifications to all three Attorneys General earlier this week.