ROYAL OAK, Mich., DEARBORN, Mich. and FARMINGTON
HILLS, Mich., March 21, 2014 /PRNewswire/ -- Beaumont Health System,
Botsford Health Care and Oakwood Healthcare have signed a letter
of intent and begun exclusive negotiations about combining their
operations into a new health care system.
The boards of the three not-for-profit organizations have
approved a letter of intent calling for formation of a new, $3.8 billion health
system that would combine assets, liabilities and operations under unified
executive and board leadership. The new system would integrate their combined
eight hospitals and 153 other patient care sites into a comprehensive and
collaborative health care network focused on advancing quality of
care and access to care for people throughout the region.
The three organizations have begun the negotiation of a
definitive agreement and due diligence discussions aimed at creating the new,
not-for-profit health system.
"We are three successful health care organizations
driven by a shared desire to collectively build upon our success in improving
quality, efficiency and value in health care delivery," says Gene
Michalski, CEO of Beaumont Health System. "By combining our strengths,
resources, experience and capabilities, we'll be well positioned to meet future
health care challenges while expanding access to high-quality, high-value
care for patients throughout the region."
"This is really all about improving patient care for
men, women and children in our respective communities," says Brian
Connolly, president and CEO of Oakwood Healthcare. "If we join forces, we
can and we will use quality data and standardized best-practice treatment
protocols across the continuum of care for improved health and greater value
for the families we serve."
"Physician collaboration and integration is a key
priority for all three of our organizations," says Paul LaCasse,
D.O., MPH, president and CEO, Botsford Health Care. "We will use our
combined resources to work collaboratively with our physicians. Employed and
private-practice allopathic and osteopathic physicians will be partners in the
creation of our new organization."
Goals of the new organization include:
- improving
the value of health care services through processes that deliver high
quality, well-coordinated patient care at the right time in the right
setting at an affordable cost
- improving
the health, well-being and outcomes of patient populations
- improving
care efficiency and patient safety by integrating patients' medical
records for easy access by caregivers across all settings of care
- improving
operational efficiency by lowering and spreading costs over a larger
system and through group purchasing of supplies and equipment
The new organization will be governed by a single board and executive
leadership structure with representation from the three organizations. John
Lewis, Oakwood chairman of the board, will serve as the initial board chair. Gene
Michalski, Beaumont CEO, will serve as the initial CEO for the new combined
organization. Michalski, Oakwood CEO Brian Connolly and Botsford CEO Paul
LaCasse will all serve on the CEO Council, overseeing the transition and
implementation of the new system. Michalski will chair the CEO Council.
Connolly and LaCasse will remain as president and CEO of their respective
organizations during the period of transition. Connolly will also serve as
transition executive on behalf of the CEO Council.
A system-wide Clinical Leadership Council, including
physicians, nurses and other health providers, led by physicians, will develop
and drive physician alignment and integration. This group will advise the CEO
Council for all medical matters. The organizations' medical staffs will remain
separate.
All three organizations will also maintain their existing
medical school relationships.
A letter of intent is an agreement that signals the desire
of the organizations to enter into a new partnership. It begins the process of
negotiating a definitive agreement and conducting "due diligence,"
during which representatives from the systems work closely together to explore
how best to bring the organizations together.
The new health system will not be final until due
diligence is completed, the boards of the three organizations approve a
definitive agreement and after appropriate regulatory approvals.
Beaumont Health System
Beaumont Health System is a three-hospital regional health
system with 1,778 licensed beds, more than 14,000 full-time equivalent
employees and nearly 3,100 physicians, including 500 employed physicians in the
Beaumont Medical Group and more than 2,600 private-practice physicians. In
addition to its hospitals in Royal Oak, Troy and Grosse Pointe,
Beaumont has numerous community-based medical centers in Oakland, Macomband Wayne counties,
family practice and internal medicine practices, five nursing centers, a
research institute, home care services and hospice. Beaumont is the
exclusive clinical teaching site for the new Oakland University William Beaumont School of
Medicine. Visit Beaumont on the web at www.beaumont.edu.
Botsford Health Care
Botsford Health Care is an integrated health care
system including Botsford Hospital,Botsford Commons Senior Community and Community Emergency Medical Service.
Botsford Hospital is a 330-bed hospital and verified trauma center located in Farmington
Hills. Each year Botsford cares for more than 16,000 inpatients and 60,000
emergency trauma patients with 2,500 employees, 300 volunteers and more than
600 physicians. The hospital is home to an extensive medical education
program affiliated with Michigan State University's College of Osteopathic
Medicine. Botsford Commons Senior Community, located in Farmington Hills,
provides a variety of residential choices for the elderly: independent living
in condominiums and apartments, a senior assisted living center and a
rehabilitation and continuing care center. Community Emergency Medical Service
provides ambulance transportation, emergency and non-emergency treatment along
with educational services to healthcare organizations, municipalities and
communities throughout Southeastern Michigan. Visit botsford.org,
facebook.com/botsford hospital.
Oakwood Healthcare
Oakwood Healthcare is
an independent, not-for-profit health care organization committed to improving
the health and well-being of the individuals and communities in Wayne
County. As one of the largest employers in the county, Oakwood provides acute,
specialty, primary and preventative care services backed by excellence in
research and education. With four acute care hospitals and more than 50
outpatient facilities, Oakwood's 9,000 employees and 1,300 physicians represent
nearly every medical and surgical specialty and subspecialty. Oakwood was also
a finalist for the 2011 Malcolm Baldrige National Quality Award.
SOURCE Beaumont Health System; Oakwood Healthcare; Botsford
Health Care
