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Beaumont Health Clears Key Hurdles in Latest Merger Try

John Commins, for HealthLeaders Media, July 2, 2014

Why did the Henry Ford talks collapse?

"Henry Ford is a salaried physician model and has a very longstanding closed network practice that built a very successful health maintenance organization and has that sort of mindset. Beaumont is an independent practice model and the physicians are paid predominantly fee for service," Udow-Phillips says.

"Those two fundamental issues were very important in what made it very difficult for them to come together in a merger."

"In addition to that you have a geographic issue where Henry Ford, even though they have a location in Oakland County, it has been very strongly anchored in Detroit, and you have Beaumont very strongly anchored in a wealthy suburb of Detroit," she says.

So why will this effort "to combine their operations" (the three systems have avoided the "M" word) work with Botsford and Oakwood?

"These hospitals have a more similar profile. All of the physicians are predominantly fee for service and independent practice. There are some employed physicians but not the majority," Udow-Phillips says.

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