by
John R. Fischer, Senior Reporter | October 24, 2023
Henry Ford and Ascension Michigan are creating a $10.5 billion healthcare system through a joint venture. (Photo of Henry Ford Hospital, courtesy of Henry Ford Health)
Under its branding, Henry Ford Health will integrate Ascension Michigan’s Southeast and Genesys healthcare facilities and assets as part of a joint venture to create a $10.5 billion health system.
While not a merger or an acquisition, the health system would be made up of 13 acute care hospitals, 50,000 employees, and more than 550 regional healthcare sites. It would be headquartered in Detroit, where it will be the largest healthcare provider in the metro area, and led by Henry Ford Health CEO Bob Riney and a board of directors consisting of representatives from both organizations.
Together, they will receive almost 44% of the Detroit area’s hospital market revenue,
reported The Detroit News. Both say they will be able to increase access to care, lower costs for patients, grow and adapt services and care settings, offer more career development opportunities, and recruit top talent.
All Henry Ford’s acute care hospitals and other care facilities and assets, including Health Alliance Plan, will be included, as will Ascension Genesys Hospital; Ascension Macomb-Oakland Hospital, Warren and Madison Heights Campuses; Ascension Providence Hospital, Novi and Southfield Campuses; Ascension Providence Rochester Hospital; Ascension River District Hospital; and Ascension St. John Hospital, their related sites of care, and Ascension Brighton Center for Recovery.
Ascension Michigan’s southwest and northern hospitals will remain part of the national health ministry.
“Patients across Michigan will have more access than ever to end-to-end healthcare services, from primary care through complex specialty care and procedures,” said Dr. Doug Apple, chief clinical officer at Ascension Michigan, in a statement.
Dr. Adnan Munkarah, president, care delivery system and chief clinical officer at Henry Ford Health, says that his organization will be able to “train more physicians, nurses, and allied health professionals, at more sites, and in more specialties.”
While it did not specify a reason for entering the joint venture, in a 2023 audit report, Ascension Michigan reported a $3 billion fiscal year operating loss. It also has sold several facilities, including seven subsidiary hospitals that were part of Milwaukee-based Ministry Health Care to Asprius Health,
reported the Detroit Free Press.
For now, Ascension Michigan facilities will retain their Catholic identity, and both health systems will work to preserve this. The Detroit Free Press reported that this may create challenges around each organization’s different approaches to LGBTQ+ and reproductive healthcare, since under Ethical and Religious Directives for Catholic Health Care Services regulations, Ascension is prohibited from offering contraception, sterilization, abortion and in vitro fertilization services because they violate Catholic church teachings.
No cash transaction is included.
The organizations are seeking state and federal regulatory approval. They expect the deal to be completed by the summer 2024.
