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Analysis

Beaumont Health and Summa Health Partnership Called Off

By Melanie Blackman  
   May 29, 2020

The merger, which has been in the works for nearly a year, was dashed Friday without an explanation.

Beaumont Health and Summa Health are ending their planned partnership, according to a joint statement released Friday.

No explanation was given as to why the partnership has been called off. According to the statement, the health systems "received all necessary state and federal regulatory approvals."

In July 2019, Summa, based in Akron, Ohio, and Beaumont based in Southfield, Michigan, announced that they signed a letter of intent to merge. In January 2020, Summa signed a definitive agreement to join Beaumont, in hopes of competing with other health systems in the area.

The two nonprofit health systems account for over $6 billion in total annual revenues.

In April, Beaumont Health was forced to temporarily lay off over 2,000 employees, cut 450 positions, and cut pay for top executives due to financial strain. Following that announcement, the merger was postponed so the health systems could focus on the impacts of the COVID-19 pandemic.

During this process, both health systems have operated independently from each other.

This is not the first merger to be called off during the COVID-19 pandemic.

Four South Chicago hospitals, Advocate Trinity Hospital, Mercy Hospital and Medical Center, South Shore Hospital, and St. Bernard Hospital signed a nonbinding merger agreement in January. The merger was called off at the end of May due to financial concerns.

Melanie Blackman is the strategy editor at HealthLeaders, a Simplify Compliance brand.

Photo credit: Summa Health System's campus in Akron, Ohio (Provided)


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