Effective April 1, Sparrow Health joined University of Michigan Health to create a $7 billion organization.
Lansing, Michigan-based Sparrow Health System has officially joined University of Michigan Health, an academic health system based in Ann Arbor, Michigan, the systems announced Monday.
The deal, first announced in December 2022, was finalized on Saturday, April 1 following necessary legal and regulatory approvals, and looks to expand healthcare services to residents in mid-Michigan. University of Michigan Health has committed to investing $800 million in Sparrow, which will be funded by hospital operations and strategic investments over the next eight years.
"This is an incredibly proud moment for Sparrow as joining University of Michigan Health enables us to accelerate our expansion of services, build greater breadth and depth of clinical expertise, and seamlessly integrate leading-edge technology and other updates into our facilities," Sparrow Health president and CEO, James F. Dover, said in a statement. "We look forward to realizing our shared goal of delivering nationally renowned clinical excellence in an accessible way for patients."
Sparrow Health was one of the largest health systems in Michigan, has more than 120 sites of care, and employs 10,000 caregivers and 600 employed primary care providers. The combined organization now has more than 200 sites of care and is a $7 billion organization.
System integration and branding will follow in the coming months, with plans to conduct both in a "thoughtful" manner. Dover will now report to Marschall Runge, MD, PhD, CEO of Michigan Medicine, dean of the U-M Medical School, and EVP for medical affairs at U-M. Additionally, interim integration leaders have been identified to guide the integration process.
"For University of Michigan Health, this milestone advances our organization’s long-term vision of a statewide system of highly coordinated care. The completion of this transaction represents a special moment and, as one team, we are well positioned to unlock new opportunities and share best practices while providing our patients with the highest level of care," Runge said in a statement.
"We are confident that, together, University of Michigan Health and Sparrow will bring increased health care innovation to Mid-Michigan and beyond."
Melanie Blackman is a contributing editor for strategy, marketing, and human resources at HealthLeaders, an HCPro brand.