University of Michigan Health Acquires Lansing-Based Sparrow Health System, Central Michigan’s Largest Hospital System with Six Campuses in Charlotte, Ionia, St. Johns, Carson City and Lansing, and 500 Primary Care Providers and Specialists .
The deal was approved Thursday by the University of Michigan board of trustees. Sparrow Health System’s board of directors signed the agreement in late November.
Pending regulatory approvals, the acquisition is expected to close in the first half of 2023.
After:Newly merged Beaumont-Spectrum Health System becomes Corewell Health
After:Beaumont-Spectrum merger reaches new milestone with formal integration agreement
UM Health spends $800 million
“This agreement strengthens UM Health’s ability to provide quality health care in communities beyond Southeast Michigan, expanding our mission as a statewide referral site for most seriously ill people,” Paul Brown, chairman of the Board of Regents, said in a statement.
Under the agreement, Ann Arbor-based UM Health will spend $800 million over the next eight years on Sparrow hospital campuses, funding facility projects, operations and other “strategic investments.” “.
Among them are renovations to the neonatal intensive care unit at EW Sparrow Hospital in Lansing and upgrades to cardiology, oncology, orthopedics and neuroscience departments, said Joseph Ruth, vice president. executive and chief operating officer of Sparrow Health System, in a statement.
“This injection of investment in Sparrow services will provide opportunities for job growth and career development that would not otherwise be available to our caregivers,” Ruth said.
UM Health Footprint Expansion
The deal includes Sparrow’s Physician Health Plan, an insurance plan that provides coverage to more than 70,000 members and 300 employers across the state, and a Medicare Advantage plan.
It was unclear on Thursday whether Sparrow will retain his name or be renamed as part of the deal.
“Over the coming year, we plan to introduce strategic updates to the Sparrow brand to appropriately reflect the relationship between our organizations,” said UM Health spokesperson Mary Masson.
With the addition of Sparrow, UM Health will become a $7 billion organization with more than 200 care sites across the state, including its main teaching hospital, CS Mott Children’s Hospital, Von Voigtlander Women’s Hospital, the Frankel Cardiovascular Center, the Kellogg Eye Center, UM Health West, and the Rogel Cancer Center.
“For University of Michigan Health, this is an important step toward our long-term vision of a highly coordinated statewide system of care; a vision that Sparrow also embraces and is excited to grow,” said Dr. Marschall S. Runge, CEO of Michigan Medicine, Dean of UM Medical School and Executive Vice President of Medical Affairs at the University of Michigan.
“At closing, UM Health will create a clinical care network that builds on the strengths of UM’s world-class academic medical center and a high-performing community health system. Together, the two organizations will focus on bringing increased healthcare innovation to Central Michigan and beyond.
This is the latest in a string of recent acquisitions and mergers among Michigan hospitals over the past year.
In January, the former Beaumont Health and Spectrum Health systems came together in a mega-merger to form the new Corewell Health, the state’s largest health system with 22 hospitals and more than 60,000 employees.
And the former Ottawa North Community Health System based in Grand Haven was acquired in October by Trinity Health. It became Trinity’s ninth Michigan hospital, based in Livonia.