University of Michigan Health acquires Sparrow Health System in Lansing, Central Michigan’s largest hospital system with six campuses in Charlotte, Ionia, St. John’s, Carson City and Lansing, along with 500 primary care providers and specialists.
The deal was approved Thursday by the University of Michigan Board of Regents. Sparrow Health System’s board of directors signed the agreement in late November.
Pending regulatory approvals, the acquisition is expected to be completed in the first half of 2023.
more:The newly combined Beaumont-Spectrum Health System was renamed Corewell Health
more:The Beaumont-Spectrum merger takes it one step further with a formal integration agreement
UM Health is spending $800 million
“This agreement strengthens UM Health’s ability to provide quality health care in communities outside Southeast Michigan, expanding our mission as a statewide referral site for the most critically ill,” Paul Brown, Chairman of the Board of Regents, said in a statement.
As part of the arrangement, Ann Arbor-based UM Health will spend $800 million over the next eight years on Sparrow’s hospital campuses, financing facility projects, operations, and other “strategic investments.”
Among them are renovations to the neonatal intensive care unit at EW Sparrow Hospital in Lansing and an upgrade to cardiology, oncology, orthopedics and neuroscience services, Joseph Roth, Sparrow Health System’s executive vice president and chief operating officer, said in a statement.
“This investment in Sparrow Services will provide job growth and career development opportunities that will not be available to our caregivers,” said Ruth.
Expanding the UM Health footprint
The agreement includes Sparrow’s Physicians Health Plan, an insurance plan that provides coverage to more than 70,000 members and 300 employers across the state, as well as Medicare Advantage.
It was not clear on Thursday if Sparrow would keep its name or be renamed as part of the deal.
“In the coming year, we expect to provide strategic updates to the Sparrow brand to appropriately reflect the relationship between our organizations,” said UM Health spokeswoman Mary Mason.
With the addition of Sparrow, UM Health will become a $7 billion organization with more than 200 sites of care across the state, including Major University Hospital, CS Mott Children’s Hospital, Von Voigtlander Women’s Hospital, Frankel Cardiovascular Center, Kellogg Eye Center, UM Health West and Rogell Cancer Center.
“For University of Michigan Health, this is an important step toward our long-term vision for a highly coordinated statewide system of care; Chief Executive Officer of Michigan Medicine, Dean of the University of Michigan School of Medicine, and Executive Vice President for Medical Affairs at the University of Michigan, Dr. Marshall S. Range A vision that Sparrow also embraces and is excited to build.”
“Upon closing, UM Health will build a clinical care network that builds on the strengths of the world-class UM Academic Medical Center and a highly successful community health system. Together, the two organizations will focus on bringing even more healthcare innovations to Central Michigan and beyond.”
This is the latest in a series of recent acquisitions and mergers between Michigan hospitals in the past year.
In January, Beaumont Health and Spectrum Health systems were combined in a massive merger to form the new Corewell Health, the largest health system in the state with 22 hospitals and more than 60,000 employees.
and the former Community Health System of North Ottawa with headquarters in Grand Haven It was received In October by Trinity Health. It became the Ninth Michigan Hospital in Trinity and Livonia.
Contact Christine Shamus: firstname.lastname@example.org. Follow her on Twitter @kristenshamus. Subscribe to Free Press.
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