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Beaumont Health Clears Key Hurdles in Latest Merger Try

John Commins, for HealthLeaders Media, July 2, 2014

"And they're in the suburbs of Detroit: Dearborn for Oakwood; Farmington Hills for Botsford; and Oakland County for Beaumont. So they form a ring around Detroit. They have a little bit more similar profile in terms of the type of patient populations they are serving."

Another Culture Clash Unlikely
Allan Baumgarten, a veteran observer of the shifting hospital landscape across the Midwest, agrees that a culture clash is unlikely now that key stumbling blocks have been removed.

"There were other disagreements about who would lead the combined organization and would the combined organization maintain two academic medical centers (Beaumont started a medical school with a local university a few years ago)," Baumgarten said in an email exchange.

"Clearly these parties have agreed that the Beaumont brand is more valuable than Oakwood or Botsford."

As for changing the care delivery landscape, Baumgarten provided this analysis:

"Based on revenues in 2012, the combined system will have 30% of the hospital market in the three-county Detroit area (Wayne, Oakland and Macomb). That makes them the largest system it what is a relatively unconsolidated market.

Next largest is Henry Ford at 22.8% (Henry Ford just got a credit downgrade over concerns about operating income). I don't think that 30% market share is enough to attract opposition from the (Federal Trade Commission/Department of Justice), although a 40% Beaumont-Ford combination would have gotten closer scrutiny."
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