Michigan-based Beaumont Health will gain a health insurance operation and opportunities for significant regional expansion as part of its acquisition of Summa Health, headquartered in Akron, Ohio.
The not-for-profit health systems announced their intent to merge last week in a deal that's expected to close by the end of the year. Among other benefits, the merger will add four hospitals, a health plan, and managed care expertise to Beaumont's overall portfolio.
Financial terms were not disclosed.
WHY THIS MATTERS
These are big players in their respective markets. Beaumont is among Michigan's largest healthcare systems and includes eight hospitals and a total annual net patient revenue of $4.7 billion.
Summa Health is among the largest such organizations in Ohio, encompassing a network of four hospitals, community health centers, a health plan, a physician-hospital organization, and a multi-specialty physician organization. The company reports total annual revenues of $1.4 billion.
Summa Health, which began seeking a partner in September 2018, will keep its name and some degree of local control.
THE LARGER TREND
The Beaumont-Summa deal is the latest merger to form a regional health system that allows two entities to share operational capabilities and care models across state lines but within a contiguous geography.
ON THE RECORD
"By welcoming Summa into the Beaumont family, both organizations will share expertise, invest in each other and continue to thrive as the industry evolves," Beaumont Health CEO John Fox said.
"Since the formation of Beaumont Health, we have invested significantly in our Michigan employees, facilities and communities. We will continue to do so. One of our strategic goals is to become a regional healthcare leader. The planned addition of Summa Health allows us to take one step closer to achieving this key strategic priority," Beaumont Health Board Chair John Lewis added.
Deirdre Fulton is communications professional and freelancer based in Maine.
On Twitter: @deirdrefulton