The partnership will bring eight hospitals and an addiction treatment center into the Henry Ford fold.
Henry Ford Health and Ascension are on the verge of launching their combined organization, the health systems announced.
The joint venture, which was revealed nearly a year ago, is set to close on September 30 and get under way on October 1, bringing eight hospitals and an addiction treatment facility from Ascension’s Michigan and Genesys network under the Henry Ford name.
The move has been described as a joint venture rather than a merger by both hospital operators, with no cash being exchanged as part of the deal.
For Henry Ford Health, the partnership significantly expands the Detroit-based company’s presence while maintaining its brand, assets, and leadership. Henry Ford Health president and CEO Bob Riney will be at the helm of the new organization, which will employ around 50,000 employees at more than 550 sites across Michigan.
“Since we announced our proposed joint venture last fall, we’ve been engaged in thoughtful planning across our organizations – all focused on how we plan to come together to build the future of health on behalf of those we serve,” Riney said in a statement. “It’s given us a wonderful opportunity to make deeper commitments to the sacred mission and privilege of healthcare – and we can’t wait to make this a reality for the people of Michigan and beyond.”
The joint venture for Ascension comes at a time when the system is heavily divesting its hospital assets as it searches for financial stability.
So far this year, Ascension’s activity has included the sale of three Michigan hospitals and an ambulatory surgical center to MyMichigan Health in March and nine hospitals to Prime Healthcare in July.
The company has started to improve its finances, reporting an operating loss of $237.8 million through its first nine months of fiscal year 2024 after suffering a $3 billion operating loss in fiscal year 2023.
Meanwhile, Henry Ford Health reported an operating income of $80.5 million for 2023 and continues to show an appetite for expansion.
The Ascension hospitals and facilities part of the joint venture are Ascension Genesys Hospital, Ascension Macomb-Oakland hospitals in Warren and Madison Heights, Ascension Providence hospitals in Novi and Southfield, Ascension Providence Rochester Hospital, Ascension River District Hospital, Ascension St. John Hospital, and Ascension Brighton Center for Recovery.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
Almost a year after sharing their plans for a joint venture, Henry Ford Health and Ascension announced they will join on September 30 and start their new organization on October 1.
Henry Ford Health, which has been eager to expand, will grow its footprint in Michigan and retain its brand and assets.
The union allows Ascension to continue slimming down its portfolio of operated hospitals and gain more financial flexibility.