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Spectrum Health, Beaumont Health Unveil Merger Plans

Analysis  |  By John Commins  
   June 17, 2021

Spectrum Health President and CEO Tina Freese Decker will lead the unified system when the merger is completed.

Michigan's Beaumont Health and Spectrum Health have signed a letter of intent to "explore creating a new health system," the two health systems said Thursday in a joint announcement.

If the merger of the cross-state, not-for-profit providers is consummated, the unified health system -- temporarily named "BHSH System" -- will operate 22 hospitals and 305 outpatient locations, with more than 64,000 employees, including more than 7,500 physicians, more than 3,000 advanced practice clinicians, and more than 15,000 nurses, the health systems said.

"Beaumont Health and Spectrum Health are leaders in our respective markets, and by bringing together our organizations to create a new system, we have the opportunity to deliver greater value in high-quality and affordable health care to our communities," said Spectrum Health President and CEO Tina Freese Decker, who will lead the unified system when the merger is completed.

"Together, we can provide a more personalized experience that prioritizes individuals’ health while also attracting and retaining great talent to our vibrant communities," she said.

Beaumont Health President and CEO John Fox will leave the health system after the merger, and a new president will be hired for as president of BHSH Beaumont Health.

The new system will operate dual headquarters in Southfield and Grand Rapids, the current headquarters of Beaumont and Spectrum, respectively. Freese Decker and senior leaders will spend time on both sides of the state.

A 16-member board will include seven seats appointed by each system, Freese Decker, and a new Board member to be appointed when the merger is finalized. The board will include at least three physicians. The temporary legal name of the new organization will be "BHSH System."

The first board chair will be Julie Fream, the board chair of Beaumont Health.

“By bringing together our organizations to create a new system, we have the opportunity to deliver greater value in high-quality and affordable health care to our communities.”

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.


KEY TAKEAWAYS

If the merger is consummated, the unified health system will operate 22 hospitals and 305 outpatient locations, with more than 64,000 employees.

Beaumont Health President and CEO John Fox will leave the health system after the merger is finalized.

The new system will operate dual headquarters in Southfield and Grand Rapids, the current headquarters of Beaumont and Spectrum, respectively.

The president and CEO and senior executive leadership team will spend time on both sides of the state.

A 16-member board will include seven seats appointed by each system, Freese Decker, and a new board member to be appointed when the merger is finalized.

The board will include at least three physicians. The temporary legal name of the new organization will be "BHSH System."


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