One of the best was to a squelch persistent rumor is to acknowledge that it's true.
Last week Henry Ford Health System and Beaumont Health System did just that.
Two of the largest not-for-profit health systems in Michigan publicly confirmed long-swirling speculation that they're pursuing a merger that, if finalized early next year, will create a $6.4 billion integrated healthcare organization serving the southeastern part of the state.
"This kind of change is sweeping every kind of hospital in the United States," Gene Michalski, CEO of Royal Oak-based Beaumont said Thursday in a teleconference confirming the deal.
"Healthcare reform is not going to go away," Michalski said. "There are too many forces that want change in this country to get higher quality, lower cost healthcare for the populations we serve. It is clearly transformative and it is our belief that this collaboration, the joining of these two wonderful health systems, will be transformative in its own right."
"In short, we want to lead events not trail events. These are both strong health systems. We didn't have to partner. We chose to partner."
If the deal passes due diligence and state review, the two not-for-profit systems would combine 10 hospitals, two medical schools, and 200 other patient care sites. The health systems are in exclusive negotiations and a definitive agreement for the new, not-for-profit organization is expected to be completed in the first half of 2013.
Nancy Schlichting, CEO of Detroit-based Henry Ford, called Beaumont "the absolute ideal partner for us."
"We have a common vision for the future of healthcare," Schlichting said at the teleconference. "Patients and their families are the center of our universe. We are national leaders in quality and patient safety. … We like the fact that this is a pure Michigan organization that is going to improve the health of Michiganders and be a role model for the country."
Michalski said the merger talks reflect the "monumental shift" from inpatient care to outpatient care."
"Also there is a growing importance of transforming our organizations from providing sick care to taking care of populations and helping people stay out of hospitals," he said. "The need for strong partnerships has never been greater in our view and even strong industry leading health systems like ours are responding to these challenges by forming very creative relationships with like-minded peers."
South Jersey Health System, Underwood-Memorial Health Finalize Merger
Also last week, South Jersey Health System Inc. in Vineland, NJ, and Underwood-Memorial Health System in Woodbury, NJ signed a merger agreement that finalizes a deal first announced last January.
SJH has more than 3,500 employees and a medical staff of more than 600 physicians. It includes the SJH Regional Medical Center, a 262-bed facility in Vineland; SJH Elmer Hospital, a 96-bed hospital in Elmer; the SJH Bridgeton Health Center that houses 65 mental health and inpatient hospice beds; and outpatient sites in four counties in Southern New Jersey.
UMHS includes the flagship Underwood-Memorial Hospital, a 305-bed, acute care hospital in Woodbury, NJ, and assorted out-patient clinics.
Baptist (KY) Health Buys Trover Health System
Baptist Health announced that it has acquired Trover Health System in Western Kentucky. The Madisonville-based facility the eighth hospital in the Bluegrass state for the Louisville-based health system.
The 410-bed Trover hospital will now be called Baptist Health Madisonville.
No cash was exchanged but The Courier-Journal reports that the deal is valued at about $120 million.
"We couldn't have chosen a finer addition to our already strong, statewide network of hospitals," Baptist Health President/CEO Tommy J. Smith said. "And we're equally proud that Trover chose Baptist when looking for a partner."
The announcement caps a year of negotiations.
"This is a monumental day in the history of healthcare in Hopkins County and the surrounding communities," E. Berton Whitaker, president/CEO of Baptist Health Madisonville, said in a media release. "By joining the Baptist Health family, we are positioning our health system to address the ever-changing needs of providing healthcare in the years to come."
Baptist Health shortened its name from Baptist Healthcare System on Sept. 5.
CHI, Saint Clare's Health End Acquisition Talks with Ascension
Catholic Health Initiatives, Denville, NJ-based Saint Clare's Health System, and Ascension Health Care Network announced on Thursday that they have ended negotiations for the transfer of ownership of Saint Clare's.
In March CHI and SCHS announced they were in exclusive negotiations with Ascension for the transfer of ownership of SCHS to best meet the needs of the communities SCHS serves. CHI said last week it remains committed to Saint Clare's until new ownership is secured.
CHI said that the decision to sell the hospital "was based on the need to better meet the demands and requirements of the communities served by Saint Clare's and the recognition that, as health care reform rapidly evolves, it is critical for health care providers to be part of regional networks of coordinated health care delivery organizations including physicians, health facilities, payers and other related health care entities."
No explanation was given for why the talks broke off.
CHI and SCHS said they will continue to explore opportunities for regionally clinically integrated networks of providers and payers in New Jersey.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.