The two Midwest providers expect the deal to close by the end of Q1 2020.
About six months after announcing plans to combine operations, Summa Health signed a definitive agreement to join Beaumont Health Monday morning.
Summa, based in Akron, Ohio, and Beaumont, based in Southfield, Michigan, plan to form a combined organization with $6.1 billion in total revenue and more than 45,000 employees.
As part of the deal, Summa will maintain oversight of clinical operations in Ohio and oversee SummaCare, its health insurance business.
"[Summa's] Board is confident that this partnership will further our abilities to not only provide excellent clinical services throughout Northeast Ohio, but also position our leadership, physicians and employees for continued success and growth," Dr. Cliff Deveny, CEO of Summa, said in a statement.
The Beaumont announcement marks the latest step forward for Summa, which underwent a crisis of confidence and leadership change a decade ago before Deveny sparked an organizational improvement centered around physician engagement scores.
Related: How Summa Health Kindled a Cultural Turnaround: 3 Steps
Pending the deal's approval, the two organizations are eyeing "significant capital and operating projects" to drive growth in their respective markets.
"Conversations between leaders and staff at both organizations have been going well," John Fox, CEO of Beaumont, said in a statement. "We very much look forward to working even more closely together now that we have a definitive agreement in place."
The deal must receive customary state and federal regulatory approval, though the two organizations expect the deal to close by the end of Q1 2020.
Related: Why Summa Health Wants to Be Under Beaumont's Umbrella
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: Summa Health System's campus in Akron, Ohio (Provided)