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Ascension Michigan to integrate with Henry Ford Health 

Expanded network announced after Ascension reports $2.6B net loss for the year.

Photo: Riva Sayegh-McCullen/Courtesy Henry Ford Health  

Henry Ford Health and Ascension Michigan have signed an agreement to integrate Ascension's southeast Michigan and Genesys healthcare facilities and assets with Henry Ford's. 

The expanded organization, to be branded Henry Ford Health, would remain headquartered in Detroit. It would be led by Henry Ford Health president and CEO Bob Riney and governed by a board of directors representative of both organizations. 

The combined organization would employ approximately 50,000 staff at more than 550 sites of care across the region.

Ascension Michigan's acute care hospitals that are included in the partnership are: 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. 

All the acute care hospitals' related sites of care will also be included, as well as Ascension Brighton Center for Recovery. 

All of Henry Ford's acute care hospitals and other care facilities and assets, including Health Alliance Plan, will be included in the partnership.

Ascension Michigan's southwest and northern hospitals – Ascension Borgess Hospital, Ascension Borgess Allegan Hospital; Ascension Borgess-Lee Hospital, Ascension Borgess-Pipp Hospital; Ascension St. Joseph Hospital, Ascension St. Mary's Hospital and Ascension Standish Hospital – will remain members of Ascension's national health ministry.

The health systems are committed to working to maintain the Catholic identity of the Ascension Michigan facilities included in the partnership, Henry Ford said. Conversations on the future state of the Catholic identity of these facilities are ongoing.

The organizations said they hope to close the transaction by summer 2024.

WHY THIS MATTERS

The integrated network would focus on population health and community initiatives, as well as innovation, academic medicine and advanced complex care.

This expanded care network would create greater opportunities to coordinate, grow, and adapt services and care settings to meet consumer needs in the new, post-pandemic normal by expanding access to care, lowering costs and improving health outcomes, Henry Ford Health said.

The combined organization would provide expanded career pathways and increased opportunities for career development and advancement at more sites and in more areas, as well as amplifying the capabilities of Henry Ford Health and Ascension Michigan to attract and grow top talent.

The joint venture is also designed to expand opportunities for healthcare providers, including significantly enhanced patient-centered care delivery models and improved care coordination through interconnectivity between patients, providers and care management functions.

The organizations are in the process of submitting the agreement to state and federal regulatory agencies for review.

THE LARGER TREND

In September, Ascension released financial results for the year ended June 30, reporting a net loss of $2.66 billion. The health system said that the results demonstrate its operations and volumes have been impacted by and are stabilizing from the volatility and operational disruptions of the prolonged pandemic amid broader inflationary and recessionary pressures within the U.S. economy. 

These disruptions have contributed to higher operating costs, coupled with revenue challenges, especially in the first half of the fiscal year.

Ascension, based in St. Louis, Missouri, operates 139 hospitals in 19 states.

ON THE RECORD 

Dr. Adnan Munkarah, president of the care delivery system and chief clinical officer at Henry Ford Health said, "The commitment of the new combined organization to clinical excellence, educational partnerships and research remains steadfast, as is the focus on continuing to advance research that has immediate clinical applications and will improve treatment and outcomes. Additionally, the expanded footprint created through this joint venture will allow Henry Ford Health to provide outstanding comprehensive medical care, train more physicians, nurses, and allied health professionals, at more sites, and in more specialties, across the communities we serve."

"We are united in our shared values, cultures, and commitment to those we serve," said Carol Schmidt, senior vice president of Ascension, and ministry market executive of Ascension Michigan. "Together, we will make significant strides in improving the health of Michigan communities through unparalleled investments in critical community health initiatives, as well as contributing secure, high paying jobs and other related employment."

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org